In this issue:

*SEC/CORPORATE

..SEC Issues Staff Legal Bulletin Regarding the Suspension of Reporting Obligations Pursuant to Rule 12h-3

..SEC Issues New Interpretations on Executive Compensation and Compensation Consultant Reporting

*LITIGATION

..Second Circuit Addresses “Bespeaks Caution” Doctrine

..Veil Piercing Allegations Insufficient to Impose Liability on Non-Party to Insurance Policy; Court Vacates Attachment of Electronic Fund Transfers

*BROKER DEALER

..Federal Regulators Jointly Issue Policy Statement Regarding AML

*PRIVATE INVESTMENT FUNDS

..Financial Regulatory Reform Bill Includes Revised Private Fund Investment Advisers Registration Act of 2010

*FINANCIAL MARKETS

..SEC Extends Temporary Exemptions Related to Central Clearing of CDS

..Revised OTC Clearing Proposals Included in Senate Financial Reform Bill

*CFTC

..NFA Sets Effective Date for New Quarterly Reporting Requirement for CPOs

..DCIO Grants No-Action Relief Permitting Introduction of Customers by Non-U.S. Bank Branches

*BANKING

Federal Banking Agencies Issue Final Policy Statement on Funding and Liquidity Risk Management

..Senator Dodd Releases Financial Regulatory Reform Bill

*EXECUTIVE COMPENSATION AND ERISA

..COBRA Subsidy Changes Continue

..Inattention to COBRA Could Lead to Excise Taxes

*UK DEVELOPMENTS

..FSA Bans Prop Trader for Mismarking Positions

..FSA Publishes its 2010-11 Business Plan

..UK Government Consults on Security Interests Registration Regime

..Scope of UK Bank Payroll Tax Clarified

*EU DEVELOPMENTS

..Presidency Withdraws AIFM Directive Compromise Draft