Corporate and Financial Weekly Digest - January 18, 2013

Edited by Robert L. Kohl and David A. Pentlow

SEC Approves NYSE and NASDAQ New Compensation Committee and Adviser Listing Standards

On January 11, the Securities and Exchange Commission approved final amendments to listing standards submitted by NYSE Regulation, Inc. and NASDAQ Stock Market LLC with regard to the independence of compensation committees and the authority to retain and independence of, compensation consultants and other compensation advisers. The adoption of these listing standards was mandated by Rule 10C-1 under the Securities Exchange Act of 1934.

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SEC Extends No-Action Letter Permitting Broker-Dealers to Rely on Certain Investment Advisers to Conduct Customer Identification Program Obligations

The Securities and Exchange Commission has extended a no-action letter dated February 12, 2004 (the 2004 Letter) from the Securities Industry Financial Markets Association (SIFMA) that permits broker-dealers, subject to certain conditions, to rely on registered investment advisers to perform some or all of a broker-dealer's customer identification program (CIP) obligations. The 2004 Letter allows broker-dealers, in certain circumstances, to treat investment advisers as if they are subject to an anti-money laundering (AML) program even though the Department of Treasury's Financial Crimes Enforcement Network has yet to adopt an AML program rule for investment advisers. The 2004 No-Action Letter was to be withdrawn on the earlier of (i) the date on which an AML program rule for investment advisers became effective, or (ii) February 12, 2005. Since an AML program rule has yet to become effective, the 2004 Letter was extended, at SIFMA's request, multiple times. In response to SIFMA's most recent request to extend the 2004 Letter, the SEC has extended the 2004 Letter's no-action relief to January 11, 2015.

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FINRA Issues Annual Regulatory and Examination Priorities Letter for 2013

On January 11, the Financial Industry Regulatory Authority (FINRA) issued its annual letter outlining FINRA's regulatory and examination priorities for 2013 to FINRA-registered firms. The letter is meant to highlight to FINRA-registered firms' areas of significance to FINRA's regulatory programs.

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CFTC Issues Exemptive Order to ICE Clear Credit Permitting Commingling and Portfolio Margining of Cleared Credit Default Swaps and Security-Based Swaps

The Commodity Futures Exchange Commission has issued an...