In this issue:

*SEC/CORPORATE

*BROKER DEALER

..FINRA Issues Guidance on Master Accounts and Sub-Accounts

*PRIVATE INVESTMENT FUNDS

..Treasury Secretary Recommends That European Commission Maintain Level Regulatory Playing Field

*INVESTMENT COMPANIES AND INVESTMENT ADVISERS

*LITIGATION

..Last-Misrepresentation Theory Did Not Render Claims Against All Defendants Timely

..Misrepresentations Allegedly Made After Sale Held Insufficient to Sustain Securities Fraud Claim

*BANKING

..FDIC Sells Equity Interest in Loans

*STRUCTURED FINANCE AND SECURITIZATION

..SEC Proposes Revisions to Structured Finance Offering Rules

*EXECUTIVE COMPENSATION AND ERISA

..Health Care Reform Legislation Provides a Surprise to Large Employer VEBAs

*UK DEVELOPMENTS

..HFSB Publishes Revised Best Practice Standards

..FSA Consults on Enhancing Client Asset Protection

..More FSA Criminal Insider Dealing Cases

..FSA Announces Fines Totalling £4.2 Million for Transaction Reporting Failures

*EU DEVELOPMENTS

..CESR Publishes Call for Evidence on European Equity Market Issues

Please see full digest below for more information.