In This Issue:

*SEC/CORPORATE

..SEC Issues New Interpretations on Executive Compensation

*LITIGATION

..Delaware Chancery Court Rules on Use of Poison Pills

..Shareholder Claims of Federal Securities Fraud Survive CEO’s Motion to Dismiss

*BROKER DEALER

..Bankruptcy Judge Makes Important Ruling Impacting Madoff Investors

..FINRA Issues Annual Exam Priorities Letter

*PRIVATE INVESTMENT FUNDS

..Connecticut General Assembly Re-proposes Transparency and Disclosure Bill

*INVESTMENT COMPANIES AND INVESTMENT ADVISERS

..Custody Rule Changes to Become Effective

*BANKING

..Federal Agencies Issue Guidance Regarding the Bank Secrecy Act and Beneficial Ownership

*EXECUTIVE COMPENSATION AND ERISA

..Treasury, IRS Issue Proposed Regulations and Guidance Addressing FBAR Reporting Requirements for Retirement Plans

..COBRA Subsidy Extended Through March

*EU DEVELOPMENTS

..CESR Publishes European Short Selling Disclosure Regime

*INTERNATIONAL DEVELOPMENTS

..IOSCO Publishes Template for Hedge Fund Data Collection