SEC Sunday November 16, 2008
This is the latest edition of the SEC Sundays. Please come back every Sunday for the week’s update on all the Regulatory alerts.
11/06/08: Compliance Tool
Financial Intermediary Controls and Compliance Assessment
The ICI has developed a new tool to help funds review the internal controls of broker-dealers, fund supermarkets, and other financial intermediaries that hold clients' mutual fund investments. This new framework promises funds a higher level of assurance that investor transactions are properly executed and that shareholder accounts are properly maintained.
Financial Intermediary Controls and Compliance Assessment Sample
11/06/08: Speech by Sarah Wilson, Director and Insurance Sector Leader, FSA, at
Westminster and City conference on Rethinking Life Insurance: Capital, Risk and Strategy
Capital, Risk and Strategy: The Regulator's View of Life Insurance
11/06/08: Speech by Jamie Symington, Head of Wholesale Department, FSA, at City and Financial Market Abuse Conference
The FSA and Enforcing the Market Abuse Regime
11/6/08: Division of Corporation Finance, No-Action, Interpretive and Exemptive Letters
BlackRock Advisers LLC, - Securities Exchange Act of 1934, Section 16(a), (November 4, 2008)
11/6/08: Division of Investment Management, Staff No-Action and Interpretive Letters
Comdisco, Inc., (Creation of “Tracking Stock”), October 25, 2000
Jennison Associates LLC, (Records Management), July 6, 2000
Brown & Wood, (Business Trust Not Needed to Register Under the IAA), February 24, 2000
11/06/08: Division of Trading and Markets, Exemptive Orders and Exemptive, Interpretive, and No-Action Letters
11/06/08: Administrative Proceeding
In the Matter of Karnig H. Durgarian, Jr (Fraudulent Scheme to Cover Up Losses)
11/06/08: Administrative Proceeding
In the Matter of Ronald B. Hogan (Fraudulent Scheme to Cover Up Losses)
11/06/08: Administrative Proceeding
11/06/08: Press Release
SEC Approves a National Market System Plan for the Selection and Reservation of Securities Symbols
11/06/08, FRB: Final Rule
Reg A: Extensions of Credit by Federal Reserve Banks
The Board of Governors of the Federal Reserve System (Board) has adopted final amendments to its Regulation A to reflect the Board's approval of a decrease in the primary credit rate at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically decreased by formula as a result of the Board's primary credit rate action. The amendments to part 201 (Regulation A) are effective November 6, 2008. The rate changes for primary and secondary credit were effective on the dates specified in 12 CFR 201.51, as amended.
11/06/08, IRS: Final Regulations and Removal of Temporary Regulations
Information Reporting on Employer-Owned Life Insurance Contracts
This document contains final regulations concerning information reporting on employer-owned life insurance contracts under section 6039I of the Internal Revenue Code (Code). This final regulation is necessary to provide taxpayers with guidance as to how the requirements of section 6039I should be applied. These regulations generally apply to taxpayers that are engaged in a trade or business and that are directly or indirectly a beneficiary of a life insurance contract covering the life of an insured who is an employee of the trade or business on the date the contract is issued. These regulations are effective on November 6, 2008. These regulations are applicable for tax years ending after November 6, 2008.
11/06/08: Speech by Governor Kevin Warsh
The Promise and Peril of the New Financial Architecture
11/07/08, FinCEN: Proposed Rule
Transfer and Reorganization of Bank Secrecy Act Regulations
FinCEN proposes to move Bank Secrecy Act (BSA) regulations to a new chapter in the Code of Federal Regulations (CFR). The new chapter would contain the BSA regulations, which would generally be reorganized by financial industry. Moving the BSA regulations to a new chapter and organizing the chapter by financial industry would create a user-friendly way to find regulations applicable to a particular financial industry. This new organization within the new chapter also allows for the renumbering of the BSA regulations in a manner that would make it easier to find regulatory requirements than under the numbering system currently used in the existing regulations. FinCEN also proposes to make minor technical changes to the BSA regulations such as updating mailing addresses and points of contact. Written comments must be submitted on or before March 9, 2009.
11/07/08: FIL-127-2008
Guidance on Payment Processor Relationships
11/07/08: Press Release
FDIC Extends Comment Period for Portions of Proposed Rulemaking on Risk-Based Assessments
11/07/08: Division of Corporation Finance, Staff Legal Bulletin No. 14D (CF)
11/07/08: Staff No-Action, Interpretive Exemptive Letters
Shareholder Proposals – Individual No Action Letters
Deere & Company (October 22, 2008)
UGI Corporation (October 10, 2008)
Applied Materials, Inc. (November 5, 2008)
Becton Dickinson & Co (October 8, 2008)
Whole Foods Market, Inc. (October 31, 2008)
11/07/08: Administrative Hearing
In the Matter of Carmine J. Bua
The Commission’s complaint alleged that Bua drafted numerous legal documents in furtherance of a fraudulent scheme to illegally issue free-trading shares of Global Development & Environmental Resources, Inc. (“Global”), including an attorney opinion letter that directed Global’s transfer agent to improperly issue nearly 2.7 million shares to three foreign entities that sold their shares to the investing public during a fraudulent promotional campaign.
11/07/08: Speech by Chairman Christopher Cox at SEC International Enforcement Institute, Washington, D.C.
The Importance of International Enforcement Cooperation in Today's Markets
11/07/08: Speech by Commissioner Luis A. Aguilar before the 14th Annual Securities Litigation and Regulatory Practice Seminar, Atlanta, Georgia
11/07/08: Commission Orders
Review of Disciplinary Actions
Vincent M. Uberti (November 7, 2008)
James W. Browne and Kevin Calandro (November 7, 2008)
Nasdaq Stock Market, LLC (November 7, 2008)
11/07/08: Recent Actions
Update - TSRA Program Application Guidelines
The Office of Foreign Assets Control (OFAC) has updated its guidelines for submitting applications to OFAC pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) for a license to export agricultural commodities, medicine and medical devices to Iran and Sudan.
11/07/08: Regulatory Notice 08-67
11/07/08: Announcements & Speeches
Summary of IASC Foundation Trustees’ Meeting – October 2008
The Trustees of the IASC Foundation today announced the conclusions of their meeting in Beijing, China, on October 9 and 10, 2008
11/10/08: Division of Corporation Finance — Staff No-Action, Interpretive Exemptive Letters
Consonus Technologies, Inc. (November 10, 2008)
Re: Rule 12h-3 - Suspension of duty to file reports under Section 15(d))
United Online, Inc. (November 7, 2008)
Re: Rule 12h-3 - Suspension of duty to file reports under Section 15(d))
11/10/08: Board Order
11/12/08: Joint Agency Press Release
Interagency Statement on Meeting the Needs of Creditworthy Borrowers
11/12/08: Speech by Vice Chairman Donald L. Kohn at the Official Celebration of the 10th Anniversary of the Banque Centrale du Luxembourg, Luxembourg, Luxembourg
Productivity and Innovation in Financial Services
11/12/08: Federal Reserve Bank of New York
New York Fed Endorses TMPG Best Practice Initiatives
11/12/08: FinCEN Publication Link
SAR Activity Review – By the Numbers (Issue 11 – November 2008)
11/12/08: Litigation Release
Blue Coat Systems and Former CFO Settle Charges of Stock Option Backdating
Related Article from Investment News Daily Alert
11/12/08: Speech by SEC Chairman Christopher Cox at PLI 40th Annual Securities Regulation Institute, New York, New York
'Building on Strengths in Designing the New Regulatory Structure'
11/12/08: Publication
SAR Activity Review - By the Numbers – Issue 11
Link to Previous Issues of SAR Activity Review
11/12/08: Recent Actions
0n November 12, 2008, OFAC designated 1 entity as a terrorism organization and added and its aliases to its SDN List
OFAC Terrorism Sanctions Brochure updated as of November 12, 2008
SDN List updated as of November 12, 2008 (in Alphabetical Order)
SDN List Updated as of November 12, 2008 (Additions since January 1, 2008)
11/12/08: Letter
IOSCO Open Letter to G-20 Summit
11/12/08: Monthly Disciplinary Actions
NYSE Regulation Announces November Disciplinary Actions
Violated NYSE Rule 476 (a)(6) by effecting unauthorized trades in three customer accounts, effecting trades in eight customer accounts that were unsuitable given customer's age, circumstances, investment objectives and investment experience, and by making material misstatement to NYSE; violated NYSE Rule 408(a) by exercising discretionary authority over customer's accounts without written authorization. Censure and five-year bar.
Violated NYSE Rule 342(a) by failing to reasonably supervise and control activities of an operations employee under his control who performed supervisory duties in firm’s sales department; caused a violation of NYSE Rule 345(a) by permitting an operations employee under his control to perform supervisory duties of registered representatives without proper registration and/or NYSE approval. Censure and two-week suspension.
Violated NYSE Rule 104 by effecting transactions for Firm’s dealer account that were not reasonably necessary to maintain a fair and orderly market, and failing to effectively represent and execute agency orders entrusted to him; violated NYSE Rule 123B(d) by failing to execute customer orders in accordance with NYSE auction market rules and procedures, including requirements to cross and execute customer orders against each other before buying or selling for Firm’s dealer account. Consent to censure and one-year Floor bar.
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