SIFMA - Compliance & Legal Division

July 2008 - Breakfast CLE Seminar Presentations & Materials

noemail@sifmacl.org — Wed, 30 Jul 2008 16:00:00 GMT

July 2008 - Breakfast CLE Seminar

The Harvard Club • New York, NY

Wednesday, July 30th, 2008

NUTS AND BOLTS OF
THE CREDIT CRISIS

Luncheon Panelists:

Jeff Nielsen, Managing Director, Navigant Consulting
Vinita M. Juneja, Ph.D., Senior Vice President, NERA
Scott Bieler, Managing Director, Merrill Lynch

Presentations:

Jeff Nielsen presentation

Vinita M. Juneja presentation

Handouts:

AAG_Auction_Rate_3-08

PUB_Auction_Rate_Securities_0708

PUB_Subprime_Part_III_0708

SEC_SubprimeSeries_Part1_June2007

SEC_SubprimeSeries_Part_II_2-08

Subprime Litigation_TortSource_4_8_08

Referenced White Papers:

Navigant Subprime Litigation 1Q2008 Update (April-08)

Navigant Subprime Litigation 2007 study (Feb-08)

30-Jul-08 12:00 PM

Blueprint for a Modernized Financial Regulatory Structure Information

Mon, 31 Mar 2008 12:00:00 GMT

March 31, 2008

Dear SIFMA-CL Member:

Please see below from Tim Ryan, CEO of SIFMA, on the Treasury Department’s “Blueprint for a modernized Financial Regulatory Structure” released today.

Below you will find:

SIFMA’s summary of the plan’s executive summary
A link to Treasury’s fact sheet on the plan
A link to the plan’s executive summary
A link to the Blueprint
A link to Secretary Paulson’s speech text
SIFMA’s public reaction from Friday evening to the expected unveiling of a plan
Contact information for SIFMA

SIFMA’s summary of the Blueprint’s executive summary

Last March, Treasury convened a blue-ribbon discussion of capital markets competitiveness. Industry leaders and policymakers alike agreed that the competitiveness of our financial services sector – and its ability to support U.S. economic growth – are constrained by an outdated financial regulatory framework.

The current regulatory framework for financial institutions is based on a structure that has been largely knit together over the past 75 years. There are now:
- Five federal depository institution regulators in addition to state-based supervision.
- One federal securities regulator and one federal futures regulator, with additional state-based supervision and self-regulatory organizations with broad regulatory powers.
- Insurance regulation is almost wholly state-based, with 50+ regulators. This structure raises a number of issues with an international dimension that can be inefficient and costly.

This structure is antiquated and struggling to keep pace with market developments.

The optimal regulatory structure needs to attract capital based on its effectiveness in promoting innovation, managing system-wide risks, and fostering consumer and investor confidence.

In this report, Treasury presents a series of short, intermediate and long-term recommendations for reform of the U.S. regulatory structure.

The short-term recommendations present actionable changes to improve regulatory coordination and oversight immediately, including:

Modernize the President’s Working Group (PWG).
Create a new federal commission for mortgage origination to evaluate, rate, and report on the adequacy of each state’s system for licensing and regulation of participants in the mortgage origination process.
Clarify liquidity provisioning by the Federal Reserve to give the Federal Reserve the information it needs during this temporary period. The PWG will study the issue further.

The intermediate recommendations focus on eliminating some of the duplication of a functional regulatory system, but more importantly try to modernize the regulatory structure for certain financial services sectors within the current framework.

Treasury also includes a long-term model for discussion. This model holistically addresses the inadequacies of the current functional regulatory system.

Link to Treasury’s fact sheet on the plan
http://www.treas.gov/press/releases/reports/Fact_Sheet_03.31.08.pdf

Link to the Blueprint’s executive summary
http://www.sifma.org/regulatory/pdf/Paulson-BlueprintExec-summary.pdf

Link to the Blueprint
http://www.sifma.org/regulatory/pdf/Modernized-Financial-Reg-Structure-Blueprint.pdf

Link to Secretary Paulson’s speech
http://www.treas.gov/press/releases/hp897.htm

SIFMA’s public reaction to the unveiling of a plan

Friday night SIFMA was asked for its reaction to the expected unveiling of the plan. SIFMA was widely quoted as saying, “Treasury has delivered a thoughtful and sweeping plan which should provoke intense discussion, debate and potential legislative changes. Our present regulatory framework was born of Depression era events and is not well suited for today's environment where billions of dollars race across the globe with the click of a mouse. That fact, teamed with the current market conditions, result in an universal agreement that it is time to modernize and revitalize the current system. Treasury’s three step approach is very wise because it allows time for serious analysis, discussion and important choices. SIFMA, which represents global financial markets participants, intends to be an important player in this multi-year process.”

31-Mar-08 8:00 AM

February 2008 Monthly Luncheon Notes

noemail@sifmacl.org — Tue, 19 Feb 2008 19:00:00 GMT

February 2008 - Monthly Luncheon

The Harvard Club • New York, NY

Tuesday, February 19th of 2008

The guest speaker for this luncheon was Robert Colby, Deputy Director, SEC Division of Trading and Markets.

Materials: February Monthly Luncheon Notes

19-Feb-08 2:00 PM

January 2008 Monthly Luncheon

noemail@sifmacl.org — Thu, 17 Jan 2008 14:00:00 GMT

January 2008 - Monthly Luncheon

The Princeton Club • New York, NY

Thursday, January 17th of 2008

The guest speaker for this luncheon was Lori A. Richards, Director, SEC Office of Compliance Inspections and Examinations.

Materials: January Monthly Luncheon Remarks

17-Jan-08 9:00 AM

White Paper on Arbitration in the Securities Industry

noemail@sifmacl.org — Tue, 23 Oct 2007 12:00:00 GMT

White Paper on Arbitration in the Securities Industry
SIFMA-CL

October 23, 2007

23-Oct-07 8:00 AM

September 2007 Monthly Luncheon

noemail@sifmacl.org — Thu, 11 Oct 2007 20:00:00 GMT

September 2007 - Monthly Luncheon

The Princeton Club • New York, NY

Tuesday, September 18^th of 2007

The guest speaker for this luncheon was Andrew J. Pincus, senior partner at Mayer, Brown, Rowe & Maw LLP. Mr. Pincus -- who is the former General Counsel of the United States Department of Commerce and is currently an adjunct professor at Yale Law School -- specializes in briefing and arguing cases in the Supreme Court of the United States and advising corporations on legislative and regulatory matters. He reviewed significant legislative initiatives and cases in the Supreme Court that will impact the securities industry.

Materials: September Monthly Luncheon Notes

11-Oct-07 4:00 PM

July 2007 Monthly Luncheon

noemail@sifmacl.org — Mon, 10 Sep 2007 22:00:00 GMT

July 2007 - Monthly Luncheon

The Princeton Club • New York, NY

Tuesday, July 17^th of 2007

Speaker: Walter G. Ricciardi

Deputy Director of the Division of Enforcement
U.S. Securities and Exchange Commission.

Materials: July Monthly Luncheon Notes

10-Sep-07 6:00 PM

June 2007 Monthly Luncheon

noemail@sifmacl.org — Wed, 20 Jun 2007 20:00:00 GMT

SIFMA-CL Luncheon
Princeton Club

June 18, 2007

"An Update on the Examination Programs of the NASD, NYSE and SEC"

Examination and Regulatory Priorities
Examination Findings
Repetitive Industry Problems
Examination Coordination
Oversight Examinations

Materials: June Monthly Luncheon Outline

June Monthly Luncheon Handout

Speakers:

Mary Ann Gadziala
Associate Director, Office of Compliance Inspections and Examinations
United States Securities and Exchange Commission

Grace B. Vogel
Executive Vice President
Member Firm Regulation, New York Stock Exchange, Inc.

Robert C. Errico
Executive Vice President
Member Regulation, NASD

R. Gerald Baker
Executive Director
SIA Compliance & Legal Division

20-Jun-07 4:00 PM

Issues Regarding Fee-Based Brokerage Accounts

noemail@sifmacl.org — Thu, 17 May 2007 16:00:00 GMT

SIFMA-CL
Issues Regarding Fee Based Brokerage Accounts

Below is information regarding the D.C. Circuit Court's recent decision in Financial Planning Association v. SEC, in which the court ruled that the SEC exceeded its authority under the Investment Advisers Act when it promulgated Rule 202 (a)(11)-1 exempting certain broker-dealers providing fee-based brokerage accounts from registering as investment advisers.

2007 May Monthly Luncheon Presentation - Financial Planning Association v. SEC: Fee Based Brokerage

SIFMA-CL Annual Seminar 2007 Panel Materials: Investment Adviser Issues for Broker-Dealers

SEC Press Release

D.C. Court Ruling

17-May-07 12:00 PM

May 2007 Monthly Luncheon

noemail@sifmacl.org — Tue, 15 May 2007 16:00:00 GMT

SIFMA-CL Luncheon
Princeton Club

May 15, 2007

Speaker Lori Martin
Partner, WilmerHale

Presentation:

Financial Planning Association v. SEC: Fee Based Brokerage

Ms. Lori Martin, a Partner at WilmerHale, along with Mr. Michael Udoff, Vice-President and Associate General Counsel of the Securities Industry and Financial Markets Association spoke on issues regarding fee-based brokerage accounts. This presentation was especially timely in light of the D.C. Circuit Court's recent decision in Financial Planning Association v. SEC, in which the court ruled that the SEC exceeded its authority under the Investment Advisers Act when it promulgated Rule 202 (a)(11)-1 exempting certain broker-dealers providing fee-based brokerage accounts from registering as investment advisers.

15-May-07 12:00 PM

April 2007 Monthly Luncheon

noemail@sifmacl.org — Sun, 15 Apr 2007 16:00:00 GMT

SIFMA-CL Luncheon
Princeton Club

April 17, 2007

Speaker Stephen Luparello
Senior Executive Vice President, NASD

Presentation:

April Monthly Luncheon 2007 - Stephen Luparello - Merging of NASD+NYSE

15-Apr-07 12:00 PM

February 2007 Monthly Luncheon

Wed, 28 Feb 2007 19:00:00 GMT

SIFMA Luncheon

Princeton Club

February 20, 2007

Speaker Elisse Walter

Senior Executive Vice President, Regulatory Policy and Programs - NASD.

Pending Consolidation of NYSE and NASD

Due in part to some of the initial opposition to the merger from small firms, three NASD groups (led by M. Schapiro, D. Shulman and E. Walter) traveled around the country to conduct meetings with members. These meetings reached about 20% of the membership, and the message received was that many firms feel disconnected from the SRO structure. The NASD reminded firms of how easy it was to get involved, e.g. on committees, and the NASD is beefing up their member-relations area.

Education and outreach to member firms and investors is expected to be user friendly and affordable. NASD educational programs include e-learning, podcasts, webcasts and seminars and the utility functions provide breakpoint calculations, templates and Q&As. These appear to be useful to firms.

The new organization will benefit from NYSE Regulation and NASD knowledge and talent.

Balance of Governance

The balance of governance was a concern of firms regarding the consolidation; the governing structure of the new entity is expected to be a combination of both NYSE and NASD. The majority of the board will be public. Representatives from small, large and mid sized firms will be represented and public seats and some industry seats will be appointed.

Consolidation Process and Harmonization of Rules

The new SRO has yet to be named and consolidation is in the due diligence and early integration phase. The new entity does not expect to have a unified rule-book before year- end 2007; however, the organizations themselves will be integrated by this time. The new organization expects to have many more employees in New York, in light of the new NYSE staff, and will retain all existing NASD and in-scope NYSE employees. Most integration work will fall on the Enforcement and Member Firm Regulation Departments, including FinOps where the NASD has historically not been as strong as NYSE. On day 1 after the merger, the status quo is expected to be maintained, such that dual member firms will be subject to both rulebooks. Rule harmonization is not expected to be completed in one-fell-swoop, and there are expected to be transitional periods before new rules are effective. As ‘all regulators are a lot alike,’ the new organization is expected to be similar to its predecessors; but and a ‘best of breed’ approach is expected to be used in the regulation and enforcement areas.

SEC Involvement

The SEC is kept up to date on rule integration and harmonization. The SEC must approve changes to the NASD by-laws and the SEC will be expected to provide input for those areas of the rules where they have a particular interest.

Outstanding Regulatory Proposals

Outstanding proposals with the SEC will most likely move forward and nothing in the merger is expected to directly impact current outstanding rule proposals. Rule-making has slowed in the last 12-18 months as the industry was overwhelmed by the pace of regulatory changes. The industry appears to need time to understand changes from the past 3-4 years.

New Rules

The industry is expected to have considerable input on new rules. The NASD promised their members that they will continue to get 'two bites at the apple' in the sense that future rule proposals will usually first be published in a notice to members for consultation. This contrasts with the NYSE which usually filed immediately.

Small Firms

The harmonization process will involve a review of rules that are particularly onerous for small firms. The Small Firm Advisory Board is to be re-populated, and a Small Firms Rules Impact Task Force has been set up for this purpose.

Exam Schedule

The coordination of exams will remain a logistical challenge until 2008. As before, if you feel that your firm is being subject to duplication, please raise this at a senior level with the regulators.

Gifts and Entertainment

The NASD is very willing to discuss the potential impact of the new rules on firms and to see how to work best within the requirements of the proposed rules.

28-Feb-07 2:00 PM

January 2007 Monthly Luncheon

Sun, 14 Jan 2007 20:00:00 GMT

Presentation of Mark Menchel
Executive Vice President and General Cousel, Regulatory Policy & Oversight, NASD
Delivered at the SIA Compliance & Legal Division Monthly Luncheon
January 14, 2007 at the Union League Club-New York

14-Jan-07 3:00 PM

Role of Compliance White Paper

Tue, 01 Nov 2005 14:00:00 GMT

We are pleased to provide you with a copy of a White Paper on the Role of Compliance prepared by the SIA - Compliance & Legal Division's Compliance and Legal Division Executive Committee.

As Compliance continues to be a critical part of securities firms' self-regulatory efforts, it is very important that we establish a model for Compliance professionals throughout our industry - and we believe this White Paper to be just that model. We believe that this White Paper will provide clarity to the Compliance role, dispel some of the misconceptions within the business and regulatory communities regarding Compliance, and serve as an essential document for all
Compliance professionals.

The Division Executive Committee wishes to thank specifically, Gerald Baker and Brent Taylor, who provided the leadership on this most important endeavor, The Division Executive Committee also acknowledges the valuable assistance of Ted Levine and Adam Gogolak of the law firm of Wachtell, Lipton, Rosen and Katz, We hope that Compliance professionals will find the White
Paper a useful guide and tool in their day-to-day activities.

Sincerely,
Paul A. Merolla

White Paper attached.

1-Nov-05 9:00 AM