National Futures Association (NFA)

This week, the CFTC approved a NFA Interpretative Notice that prohibits a Member from accepting credit card payments from customers to fund retail forex accounts.  The NFA recently reviewed how customers fund their retail forex accounts and found that customers overwhelmingly funded their trading accounts using a credit card.  The NFA noted that credit cards

In September 2009, the NFA adopted Rule 2-45, which prohibits CPOs from making any direct or indirect loans or advances of pool assets to the CPO or any affiliated person or entity.  The NFA adopted the rule in response to several complaints where a CPO’s principal used loan proceeds to purchase luxury items or the

The SEC is actively encouraging companies to contact the SEC before making a public announcement.

The SEC has indicated that it has its Staff reviewing Form 8-K disclosures.  These reviews concentrate on changes in auditors, directors or officers.  The SEC Staff then will follow-up with the company to inquire as to the basis for the announcement and its

Auditors engaging in non-audit consulting?  A major accounting firm pushing for more consulting work?  Recently, the SEC’s chief accountant indicated that there were concerns at the SEC regarding auditor independence as a result of this push for non-auditing work from accounting firms.

In particular, the concern related to auditing firms boosting their non-audit consulting business. 

Alas, the Dodd-Frank whistleblower protections cover informants overseas.

The United States Court of Appeals for the Fifth Circuit, recently, held that the Dodd-Frank whistleblower protections cover informants that report to the SEC information about FCPA violations.  The court, citing that the plain language of the act, indicated that such individuals were covered.  This is an intriguing

The SEC has given a pretty good report card regarding its examinations of nationally recognized statistical rating organizations, stating there was only one mistake.  This “clean bill of health” comes about a year after the SEC issued a scathing report of all NRSROs.

Although these agencies had been blamed for some of the problems that

The SEC granted filing extensions and other regulatory relief for the entities effected by Hurricane Sandy.

Previously, the SEC extended several deadlines, and allowed certain exemptive forms to be used.  However, one of the more important offers of assistance is the SEC staff is willing to view matters on a case by case basis if additional assistance is necessary. 

Regulators seem to believe that lawyers and their law firms act like ostriches when it comes to their clients and Ponzi schemes.  For example, a law firm paid $25 million to settle malpractice claims over legal services rendered to certain hedge funds and related entities controlled by a Ponzi Scheme artist, Arthur Nadel.  See SEC

The SEC’s Division of Trading and Markets staff, recently, agreed to not recommend enforcement action, pursuant to Securities Exchange Act of 1934 Section 11(d) (1), if a broker-dealer receives payments in-kind to help defray the costs incurred in sponsoring educational and training seminars for a proposed ETF alliance program.

In granting the relief, the Staff noted the