www.isda.org ISDA announced on Monday that Gay Huey Evans will join ISDA as a Vice Chairman of the Board of Directors and Non-Executive Chairman of Europe for ISDA, effective January 10, 2011. She will act as an advisor to ISDA's Board and management with respect to public policy issues in Europe. She will also work alongside ISDA's executive management in refining the Association's strategic plans in the new regulatory environment. Date January 10, 2011 Cross References (links may require a Cabinet subscription) N/A

Financial Services Authority On January 6 2011, the Financial Services Authority ("FSA") published a consultation paper on the suitability of investment advice. The consultation paper recommends that financial advisers should assess the suitability of investments, adopt risk-profiling tools and develop processes to identify clients who are risk averse. The FSA was concerned that financial advisers had used insufficient risk profiling analyses and in doing so, had failed to take appropriate account of clients' capacity for loss. The FSA warned that financial advisers' explanations of risks

FINRA Regulatory Notice FINRA is requesting comment on a new proposal to amend its Rule 5122, which requires certain disclosures to be made in private placements issued by broker-dealers. The amendments would expand the rule to reach all private placements in which a broker-dealer participates (i.e. not just those in which it is an issuer), and would eliminate a current exemption in the rule for broker-dealers acting in a "wholesaling" capacity. Please contact any of the following Cadwalader attorneys if you have any questions about this item: Steven Lofchie; [email protected] Jeffrey

Department for Business, Innovation and Skills On 7 January 2011, the Department for Business Innovation Skills ("BIS") published a proposed set of principles for economic regulation which seek to reaffirm the importance of stable frameworks for economic regulation. The proposed principles are: i) accountability, ii) predictability, iii) coherence, iv) adaptability, v) efficiency and vi) focus. Although abstract, the principles are intended to facilitate efficient investment and sustainable growth, and provide greater clarity about roles of governments and regulators. BIS has requested

FINRA News Release For the same conduct addressed in the SEC action discussed above, FINRA ordered Charles Schwab and Co. Inc. to pay $ 18 million dollars into a Fair Fund to be established by the SEC. FINRA's release stresses that Schwab failed to amend their marketing of the funds in response to changes in the fund's portfolio. Date January 11, 2011 Cross References (links may require a Cabinet subscription) FINRA Action No. 2008012876902 NASD Rules 2110, 2210, 3010(a)