• Draft Volcker Rule Summarized.

On October 6th, Bloomberg summarized the provisions contained in a draft of the FDIC's proposed rule implementing the Dodd-Frank Act's prohibition against proprietary trading by banks. The draft includes exemptions for certain hedging activities and would apply the provision to certain foreign banks. The FDIC is scheduled to publish the proposal on October 11, 2011. Volcker Rule. The Wall Street Journal published a link to the draft.

• House Subcommittee Passes Five Bills.

On October 6th, the House Capital Markets Subcommittee passed five bills aimed at making small company capital formation easier. The bills are: H.R. 2167, the Private Company Flexibility and Growth Act, which would raise the shareholder threshold for mandatory registration with the SEC from 500 to 1,000 shareholders; H.R. 2940, the Access to Capital for Job Creators Act, which would remove the prohibition against general public solicitations for private offerings; H.R. 2930, the Entrepreneur Access to Capital Act, which would permit crowd funding; the Small Company Job Growth and Regulatory Relief Act, which would expand the exemptions for Sarbanes-Oxley Act reporting; and H.R. 1965, which would make it easier for small banks to deregister. Subcommittee Press Release.

• Bank Fee Disclosure.

On October 6th, the Los Angeles Times reported the remarks of Raj Date, interim head of the Consumer Financial Protection Bureau. Date called upon banks to make fee and terms and conditions disclosures easier to understand. Disclosure.

• Farmland Bubble.

On October 5th, Bloomberg reported that rising prices for Midwest farmland are drawing the attention of the FDIC and regional Federal Reserve Banks. Both regulators are examining the lending practices, loss reserves, and risk management policies of Midwest banks. Farmland Bubble.

• Top 10 Regulatory Developments.

On October 5th, InvestmentNews named its top 10 regulatory developments for the month of September. The list includes proposed legislation for small company capital formation, SEC proposed rules regarding the Dodd-Frank Act, and the Department of Labor's efforts to draft a fiduciary duty standard. Top 10.

• FINRA Supports Investment Adviser SRO Proposal.

On October 5th, Bloomberg reported that FINRA supports Representative Spencer Bachus's proposed bill authorizing a self-regulatory organization for investment advisers. The North American Securities Administrators Association, however, opposes the bill. SROs.

• Responding to Reports of Financial Fraud.

On October 4th, CFO.com listed eight steps that a company should take after receiving a credible tip that a financial fraud may have occurred. Eight-Step Program.

• Market Access.

On October 3rd, Reuters reported on the difficulties facing broker-dealers as they seek to comply with new SEC market access rules, which become effective at the end of November. Those rules require brokers to monitor a customer's credit and capital limits. However, because the rules are principles-based, some fear the contours of the rule will be written via enforcement. Market Access.

• Set Up.

On October 1st, CFO.com asked whether the SEC is being set up to fail. It summarized SEC Chairman Mary Schapiro's testimony concerning H.R. 2308, the SEC Regulatory Accountability Act, which would require the SEC to engage in additional cost-benefit analysis before promulgating any new regulation.

• Federal Reserve Issues Report on Bank Pay Practices.

On October 5th, the Federal Reserve Board published a report on its review of 25 of the largest banks' incentive compensation practices. While the banks have made progress in limiting the risks associated with incentive-based compensation, more can and should be done, according to the report.

• OCC Bulletin on TILA and Consumer Leasing Act.

On October 4th, the OCC issued a bulletin on new dollar thresholds for exempt consumer credit and lease transactions.

• OCC Issues Consumer Advisory on Gift Cards.

On October 3rd, the OCC published a consumer advisory discussing the terms and conditions associated with gift cards.

• FinCEN Publishes Proposed MSB Registration Form.

On October 6th, the Financial Crimes Enforcement Network published for comment proposed information that it would collect in a revised form, Registration of Money Services Business, FinCEN Form 107. The form would be used by dealers in foreign exchange; check cashers; issuers, sellers, and redeemers of traveler's checks and money orders; providers of prepaid access; and money transmitters to register with the Department of the Treasury as required by statute. Comments should be submitted on or before December 5, 2011. FinCEN Notice.

• FinCEN Publishes Iran Sanctions Guidelines.

On October 5th, the Financial Crimes Enforcement Network published a new final rule implementing Section 104(e) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010. The rule requires a U.S. bank, upon request from FinCEN, to provide certain information about foreign banks for which the U.S. bank maintains a correspondent account. FinCEN Press Release.

• FinCEN Reaches Out to Providers of Prepaid Access.

On October 5th, the Financial Crimes Enforcement Network announced its interest in holding a town hall style meeting with representatives from the prepaid access industry that may potentially fit within the newly defined term "Provider of prepaid access." The meeting is designed to hear feedback on the implications of recent regulatory responsibilities on this industry, and receive the industry's input on where additional guidance would be helpful to facilitate compliance. Potential providers of prepaid access may express their interest in attending an outreach meeting by emailing FinCEN by October 21, 2011. FinCEN Notice.

• Enforcement Activity at Historic High.

On October 6th, the CFTC announced its Division of Enforcement filed 99 enforcement actions in Fiscal Year 2011, the highest yearly tally in the agency's history and a 74 percent increase over the prior fiscal year. The Division of Enforcement also opened more than 450 investigations during the same period, another program high. CFTC Press Release.

• Commissioner Chilton Discusses High-Speed Traders.

On October 4th, CFTC Commissioner Bart Chilton called for the registration of high-speed, high-frequency traders with the CFTC, and suggested the SEC impose a similar requirement. Chilton Remarks.

• Arcadia's Physical Commodity Defense.

On October 4th, Fox Business summarized the motion to dismiss filed by Arcadia Petroleum Ltd., whom the CFTC accuses of manipulating the price of oil. Among other things, Arcadia asserts that the CFTC lacks the authority to regulate Arcadia's activities in the physical commodity markets. Defense.

• Rules Update.

On October 3rd, Reuters provided an update on the CFTC's efforts to craft a rule governing speculative position limits and swap execution facilities. Rules Update.

• Roundtable on Conflict Minerals.

The SEC will host a public roundtable on October 18, 2011 to discuss various issues related to the SEC's required rulemaking under Section 1502 of the Dodd-Frank Act relating to reporting requirements regarding conflict minerals originating in the Democratic Republic of the Congo and adjoining countries. Comments regarding issues discussed at the roundtable or on the SEC's proposed amendments should be submitted on or before November 1. SEC Release No. 34-65508.

• Roundtable on Trading Microcap Securities.

The SEC will host a public roundtable on October 17, 2011 to discuss various issues related to the execution, clearance and settlement of microcap securities. Comments regarding issues discussed at the roundtable should be submitted on or before October 31, 2011. SEC Release No. 34-65511.

• Small and Emerging Companies Advisory Committee to Meet.

The SEC's Advisory Committee on Small and Emerging Companies will hold a public meeting on October 31, 2011. Written statements should be submitted on or before October 25, 2011. SEC Release No. 33-9266.

• Enforcement Division Priorities.

On October 4th, Bloomberg summarized the remarks of Bruce Karpati, co-chief of the Enforcement Division's asset management unit. Karpati said that his unit is focusing on possible misconduct by algorithmic traders, the manner in which hedge funds value their illiquid assets, and hedge redemption practices. Karpati Remarks.

• Deputy General Counsel Named.

On October 4th, the SEC announced that Michael A. Conley was named Deputy General Counsel in the SEC's Office of General Counsel. SEC Press Release.

• Notice of Intent to Approve Filing Fees for Exempt Advisers.

On September 30th, the SEC provided notice of its intent to approve filing fees for exempt reporting advisers filing Form ADV and private fund advisers filing Form PF. The fee for exempt reporting advisers would apply starting with the date on which the order approving the fee is published in the Federal Register. If the Form PF proposal is adopted, the fees for private fund advisers would apply starting with the effective date of Rule 204(b)-1 under the Investment Advisers Act of 1940. An order approving the filing fees will be issued unless the Commission orders a hearing. Interested persons may request a hearing by writing to the Commission's Secretary by 5:30 p.m. on October 21, 2011. SEC Release No. IA-3297.

• FINRA Withdraws Rule Proposal.

On October 4th, the SEC provided notice of FINRA's withdrawal of its proposal that would have added to the FINRA consolidated rulebook certain NASD and New York Stock Exchange supervisory rules. The SEC received 12 comments in response to the proposal and the SEC's time period for approving or disapproving the rule has been extended. SEC Release No. 34-65477.

• FINRA Issues Investor Alert on Non-Traded REITs.

On October 4th, FINRA issued an Investor Alert called "Public Non-Traded REITs-Perform a Careful Review Before Investing." FINRA Press Release.

• FINRA to Require Electronic Filing of Annual Audit Reports.

On October 3rd, FINRA advised that, effective November 8, 2011, firms will be required to file their annual audit reports required by Securities Exchange Act Rule 17a-5(d) in electronic form. This requirement is applicable to annual audit reports with a fiscal year end on or after September 30, 2011. FINRA Regulatory Notice 11-46.

• NFA Updates Forex Regulatory Guide.

On October 6th, NFA published an updated regulatory guide to forex transactions.

• NYSE Regulation Publishes Circuit Breaker Levels.

On September 30th, NYSE Regulation published new Rule 80B circuit breaker levels for October 1, 2011 through December 30, 2011. NYSE Regulation Information Memo 11-27.

• FINRA Cannot Institute Judicial Proceedings to Collect Fines.

On October 5th, the United States Court of Appeals for the Second Circuit held that FINRA lacks the power to bring court actions to collect disciplinary fines. According to the court, while the Securities Exchange Act authorizes self-regulatory organizations to enforce and discipline members for violations of the securities laws and rules, and for violations of an SRO's rules, the Act does not authorize an SRO to commence judicial proceedings to collect fines. FINRA's rule changes purporting to create such authority do not change that result. The rule changes were improperly designated as "housekeeping" rules effective immediately upon filing with the SEC and were not properly promulgated under the Exchange Act's notice and comment procedures. John J. Fiero v. FINRA.

• Supreme Court Refuses Blackstone Appeal.

On October 3rd, the Supreme Court denied Blackstone Group's petition for certiorari. Blackstone appealed the Second Circuit's opinion reinstating a putative class action securities fraud lawsuit stemming from Blackstone's initial public offering. The Second Circuit found that plaintiffs plausibly alleged that Blackstone omitted from its registration statement and prospectus material information related to its investments that Blackstone was required to disclose under Item 303 of Regulation S-K. Cert. Denied.

• Privacy Act of 1974: Implementation and Amendment of Exemptions - Effective October 17, 2011.

The SEC has adopted a rule to amend its Privacy Act regulations to exempt portions of three new systems of records and to make technical amendments to its current inventory of exempted systems of records. Specifically, application of the exemptions to the three new systems of records is necessary to protect information compiled for law enforcement purposes. 76 FR 57636.

• Michael Philipp Moderates Panel on CCPs in OTC Derivatives Markets.

Michael Philipp, a partner in the firm's Chicago office, will be speaking at the International Symposium and Training Program on the Regulation of Derivatives Products, Markets, and Financial Intermediaries to be held October 17, 2011 in Chicago. Mr. Phillipp will be moderating a panel on the use of central clearing counterparties (CCPs) in OTC derivatives markets. The panel will discuss ongoing global regulatory developments that will increase the clearing of OTC derivatives. Event.

• Winston & Strawn Sponsors TMA's 2011 Annual Convention.

Winston & Strawn will sponsor the 2011 Turnaround Management Association (TMA) Annual Convention, to be held October 25-27, 2011 in San Diego. Twitter co-founder Biz Stone is the keynote speaker. Event.

• Winston & Strawn Sponsors 16th Annual LSTA Conference.

Winston & Strawn is sponsoring the 16th Annual Loan Syndications and Trading Association's (LSTA) Conference to be held on November 2, 2011 in New York. Event.

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