Jorden Burt: News & Events

November 18, 2009-- Last week, Senator Chris Dodd, Chairman of the Senate Committee on Banking, Housing and Urban Affairs, unveiled sweeping financial reform legislation. As part of the reform, Title V of the Restoring American Financial Stability Act of 2009 (the "Dodd Draft"), proposes to create an Office of National Insurance ("ONI") within the Department of the Treasury. The most recent version of the Dodd Draft was published this week as the Chairman's Mark Text and is available here.

JORDEN BURT ALERT: New Revisions to the NAIC Suitability in Annuity Transactions Model Regulation
Nov 18, 2009

On Monday November 16, 2009, the NAIC's Suitability of Annuity Sales (A) Working Group issued a new draft of the Suitability in Annuity Transactions Model Regulation. The November 16, 2009 draft makes changes based upon industry comments on the September 4, 2009 draft and also adds new provisions.

JORDEN BURT ALERT: FTC Enforcement of FACTA Red Flag Rule Delayed to June 2010
Nov 2, 2009

JORDEN BURT ALERT: FINRA Addresses Regulatory Challenges of Online Social Networking Activities
Oct 30, 2009

JORDEN BURT ALERT: House Committee Votes Overwhelmingly to Expand Advisers Act Registration Requirements
Oct 30, 2009

JORDEN BURT ALERT: Financial Action Task Force Adopts AML Guidance for the Life Insurance Industry
Oct 28, 2009

JORDEN BURT ALERT: House Committee Approves Proposed Consumer Financial Protection Agency
Oct 28, 2009

JORDEN BURT ALERT: SEC and CFTC Recommend Extensive Changes to "Harmonize" Their Regulatory Programs
Oct 22, 2009

JORDEN BURT ALERT: Florida Suitability Rule Proposal Withstands Industry Challenge
Oct 15, 2009

JORDEN BURT ALERT; House Hearing Addresses Proposed Federal Insurance Office
Oct 12, 2009

JORDEN BURT ALERT: Proposed "Whistleblower" Legislation Threatens Firms Subject to Securities Laws
Oct 9, 2009

JORDEN BURT ALERT: SEC Responds to Old Mutual Petition for Two-Year Stay of Rule 151A
Sep 29, 2009

JORDEN BURT ALERT: Old Mutual Seeks Two-Year Stay of Rule 151A
Sep 10, 2009

JORDEN BURT ALERT: NAIC Subgroup Drafts Proposed Revision to Suitability in Annuity Transactions Model Regulation
Sep 8, 2009

JORDEN BURT ALERT: Health Insurers' Use of Ingenix Databse Being Investigated by Florida Office of Insurance Regulation
Aug 26, 2009

JORDEN BURT ALERT: Florida Announces Notices of Change on Rule Proposal for Annuity Suitability Form and Disclosure Comparison Form
Aug 21, 2009

JORDEN BURT ALERT: SEC Delegates New Authority to the Department of Enforcement
Aug 17, 2009

JORDEN BURT ALERT: SEC Proposes Broad Rule Changes to Enhance Compensation and Corporate Governance Disclosures
Aug 12, 2009

JORDEN BURT ALERT: SEC Staff No-Action Letter on Mixed and Shared Funding
Aug 10, 2009

JORDEN BURT ALERT: Latest Regulatory Reform Proposals Impact Insurance Companies, Investment Advisers and Funds
Aug 4, 2009

JORDEN BURT ALERT: Mixed Results in Rule 151A Opinion
Jul 22, 2009

JORDEN BURT ALERT: Agencies Publish Final Rules Imposing New Duties for Reporting Consumer Information
Jul 17, 2009

JORDEN BURT ALERT: New York Insurance Department Says "Synthetic Annuity" is Financial Guaranty Insurance
Jul 14, 2009

JORDEN BURT ALERT: July 2, 2009 Revisions to NAIC Suitability in Annuity Transaction Model Regulation
Jul 7, 2009

JORDEN BURT ALERT: Proposed Consumer Financial Protection Agency May Impact Insurance and Securities Industries
Jul 6, 2009

JORDEN BURT ALERT: SEC Proposes Proxy Rule Changes to Facilitate Director Nominations by Shareholders
Jun 30, 2009

JORDEN BURT ALERT: Fraud Enforcement and Recovery Act of 2009 ("FERA")
Jun 29, 2009

JORDEN BURT ALERT: FINRA Proposes Changes to Rule Governing Investment Company Securities
Jun 25, 2009

Administration Proposes Major Regulatory Changes Affecting Insurance Companies, Investment Advisers and Funds
Jun 22, 2009

JORDEN BURT ALERT: Administration's Plan to Restructure the Financial Services System: A New World Order in Consumer Finance Regulation?
Jun 22, 2009

JORDEN BURT ALERT: Florida Public Hearing on Rule Proposal for Annuity Suitability and Replacement Rule Forms
Jun 17, 2009

JORDEN BURT ALERT: SEC Approves Amendments to NASD Rule 2821 Regarding Principal Approval and Supervisory Procedures
Jun 15, 2009

JORDEN BURT ALERT: Facebook Usernames: Are Your Company's Marks Protected from Infrigement?
Jun 12, 2009

JORDEN BURT ALERT: Florida Hearing On Proposed Rule To Adopt Annuity Suitability Form And Disclosure Comparison Form
Jun 9, 2009

JORDEN BURT ALERT: "Modernizing" The Regulation of Financial Services and Products
Jun 4, 2009

Financial Regulation Modernization Task Force Bulletin
Jun 2, 2009

JORDEN BURT ALERT: FINRA Proposes Consolidated Suitability and Know-Your-Customer Rules
Jun 1, 2009

JORDEN BURT ALERT: SEC Invites Company Input on Index Annuity Rule 151A
May 29, 2009

JORDEN BURT ALERT: IRS Issues Two Notices Impacting Life Insurance Contracts
May 28, 2009

JORDEN BURT ALERT: Proposed Revisions to NAIC Suitability in Annuity Transaction Model Regulation
May 27, 2009

JORDEN BURT ALERT: SIGTARP Does Not Spell Relief
May 27, 2009

New Suitability in Annuity Transactions Discussion Draft
May 27, 2009

JORDEN BURT ALERT: Florida Proposes Rule to Adopt Annuity Suitability Form and Disclosure Comparison Form
May 21, 2009

JORDEN BURT ALERT: SEC Proposes Significant Changes to Strengthen the Advisers Act Custody Rule
May 14, 2009

JORDEN BURT ALERT: Obama Administration's Fiscal Year 2010 Revenue Proposals Target Insurance Industry
May 13, 2009

JORDEN BURT ALERT: Rule 151A Litigation Oral Argument
May 11, 2009

JORDEN BURT ALERT: FTC Issues Last Minute Extension for FACTA Red Flags Rule Enforcement
May 1, 2009

JORDEN BURT ALERT: FACTA Red Flags Rule Enforcement Begins on May 1
Apr 24, 2009

JORDEN BURT ALERT: Eighth Circuit Adopts New Standard for Evaluating Excessive Advisory Fee Claims
Apr 14, 2009

JORDEN BURT ALERT: Executive Pay Under Scrutiny: House Acts to Intensify Oversight of Use of TARP Funds
Mar 30, 2009

JORDEN BURT ALERT: Supreme Court Endorses "Looking Through" Arbitration Petitions to Determine Federal Jurisdiction
Mar 27, 2009

JORDEN BURT ALERT: Money Market Funds Impacted by New ICI Recommendations
Mar 24, 2009

JORDEN BURT ALERT: OCIE Chief Urges Advisory Firms to "Step Up" to Today's Compliance Challenges
Mar 16, 2009

JORDEN BURT ALERT: Supreme Court to Decide Mutual Fund Adviser Fee Case
Mar 11, 2009

JORDEN BURT ALERT: House Passes Bankruptcy Cramdown Legislation: Significant Upheaval in Mortgage Foreclosure Rights
Mar 6, 2009

JORDEN BURT ALERT: New Form D Amendment Rules Pose Trap for Unwary
Mar 4, 2009

JORDEN BURT ALERT: SEC Issues Long-Awaited Releases on NRSRO's
Feb 4, 2009

JORDEN BURT ALERT: Florida Rule Development Workshop on Annuity Suitability and Replacement Forms
Feb 3, 2009

JORDEN BURT ALERT: Patents for Financial Services Products are Restricted After Bilski Ruling
Jan 29, 2009

JORDEN BURT ALERT: NAIC Plenary Set to Vote on Life Insurance Capital & Surplus Relief
Jan 28, 2009

JORDEN BURT ALERT: Florida Rulemaking to Implement Annuity Suitability Law for Senior Sales
Jan 23, 2009

JORDEN BURT ALERT: NAIC Publishes Draft Guidance on Reinsurance Collateral Relief
Jan 12, 2009

JORDEN BURT ALERT: Important Rule Change on FINRA Dismissal Motions Approved
Jan 9, 2009

JORDEN BURT ALERT: FINRA Fines Online Broker $1 Million for Inadequate AML Procedures
Jan 7, 2009

JORDEN BURT ALERT: Third Circuit Clarifies Class Certification Standards
Jan 7, 2009

JORDEN BURT ALERT: Balance Sheet Relief for Life Insurance Companies?
Jan 6, 2009

JORDEN BURT ALERT: SEC Adopts Rule 151A
Dec 18, 2008

JORDEN BURT ALERT: SEC Adopts XBRL Rules for Public Companies and Mutual Funds
Dec 18, 2008

JORDEN BURT ALERT: FinCEN Modifies Currency Transaction Reporting Exemptions
Dec 5, 2008

JORDEN BURT ALERT: SEC Stresses Ongoing Need for Effective Compliance Programs
Dec 4, 2008

JORDEN BURT ALERT: Treasury Extends Temporary Guarantee Program for Money Market Funds
Nov 25, 2008

JORDEN BURT ALERT: SEC Approves New Summary Prospectus Delivery Option for Mutual Funds
Nov 19, 2008

Mark-To-Market Accounting Draws Mixed Reviews at SEC Roundtable
Nov 4, 2008

JORDEN BURT ALERT: FINRA Requires Broker-Dealer Disclosures Regarding Money Market Guarantee Program
Oct 31, 2008

JORDEN BURT ALERT: New Federal Reserve Program to Purchase Money Market Fund Assets
Oct 21, 2008

JORDEN BURT ALERT: Indexed Annuities and Other SEC Rulemaking Proposals: Comment Period Issues
Oct 20, 2008

JORDEN BURT ALERT: November 14, 2008 Deadline to Apply for Capital Purchase Program
Oct 20, 2008

JORDEN BURT ALERT: Important SEC Developments
Oct 13, 2008

JORDEN BURT ALERT: The Rescue Bill's Troubled Asset Purchase Program: How Will it Work?
Oct 13, 2008

JORDEN BURT ALERT: Treasury Guarantees Participation in Temporary Guarantee Program for Money Market Funds by Insurance Dedicated Funds
Oct 8, 2008

JORDEN BURT ALERT: Short Selling Developments
Oct 6, 2008

Second Circuit Concludes Whistleblower Claims Under SOX Must be Arbitrated
Oct 6, 2008

SEC/FASB Ease Fair Value Accounting Requirements
Oct 1, 2008

JORDEN BURT ALERT: Money Market Fund Developments
Sep 29, 2008

JORDEN BURT ALERT: New York to Regulate Credit Default Swaps as Insurance
Sep 26, 2008

JORDEN BURT ALERT: NAIC Advances Reinsurance Regulatory Modernization Framework Proposal
Sep 25, 2008

JORDEN BURT ALERT: Short but Powerful - New Privacy Law Requires Compliance by October 1, 2008
Sep 22, 2008

JORDEN BURT ALERT: Federal District Court Declines to Certify Putative Class of Bonus Annuity Purchasers
Sep 16, 2008

JORDEN BURT ALERT: Labor Department Proposes "Investment Advice" Guidance
Aug 22, 2008

JORDEN BURT ALERT: SEC Proposes Brokerage Practice Guidance for Fund Boards
Aug 1, 2008

JORDEN BURT ALERT: FINRA Proposes New Rules Governing Variable Insurance Product Communications
Jul 29, 2008

JORDEN BURT ALERT: DOL Issues a Proposed Regulation to Improve Participant Fee and Expense Disclosure
Jul 23, 2008

JORDEN BURT ALERT: SEC Staff Issues ComplianceAlert Letter to CCOs
Jul 23, 2008

JORDEN BURT ALERT: Kentucky Premium Tax Cases
Jul 17, 2008

JORDEN BURT ALERT: Putative Class Action Alleging Excessive 12b-1 Fees
Jul 7, 2008

A putative class action complaint has been filed against the adviser and distributor (collectively, "defendants") of the American Funds' EuroPacific Growth Fund ("Fund") to recover allegedly "excessive" and "disproportionate" Rule 12b-1 fees ("12b-1 fees") paid by the Fund to the defendants.

SEC Proposed Rule 2a-7
Jul 2, 2008

Further to our email alert of June 26, the SEC release proposing changes to Rule 2a-7 is available

JORDEN BURT ALERT: SEC Proposed Changes To Rule 2a-7
Jun 26, 2008

At an open meeting held on June 25, 2008, the SEC unanimously voted to propose changes to Rule 2a-7 relating to the use of ratings issued by nationally recognized statistical rating organizations ("NRSROs").

JORDEN BURT ALERT: SEC Proposed Rules 151A and 12h-7
Jun 26, 2008

Further to our email alert yesterday, the SEC release proposing Rules 151A and 12h-7 is available here.

JORDEN BURT ALERT: SEC Proposes Sweeping Changes For Fixed Indexed Annuities
Jun 26, 2008

After more than 10 years of silence on the securities status of fixed indexed annuities, at an open meeting held on June 25, 2008, the SEC unanimously voted to propose a new rule that would require SEC registration for the offering of certain types of fixed indexed annuities.

JORDEN BURT ALERT: SEC Brings First Enforcement Action Against Former Compliance Officer
Jun 24, 2008

A former compliance officer of Chanin Capital LLC, a broker-dealer, was recently fined $25,000 by the SEC for willfully aiding and abetting violations of Section 15(f) of the Exchange Act.

JORDEN BURT ALERT: Florida Adopts Substantial Changes to its Insurable Interest Law
Jun 20, 2008

On July 1, 2008, substantial amendments to Section 627.404, Florida's insurable interest law will become effective.

JORDEN BURT ALERT: FINRA Proposes New Amendments to Rule 2821
May 22, 2008

On May 21, 2008, FINRA filed with the SEC a proposal to amend the principal review and certain other requirements of Rule 2821. The proposal would limit the scope of Rule 2821 to recommended purchases and exchanges of deferred variable annuities and recommended initial sub-account allocations, rather than to all purchases and exchanges.

JORDEN BURT ALERT: Annuity Sales Practices Bill Approved by Florida Legislature
May 7, 2008

On May 2, 2008, Florida's legislature unanimously approved S.B. 2082, a new bill targeting misleading, deceptive and unsuitable annuity sales practices.

JORDEN BURT ALERT: FINRA Seeks Further Delay of Rule 2821(c) and (d)
Apr 18, 2008

On April 17, 2008, FINRA filed with the SEC a proposal to delay the effective date of paragraphs (c) and (d) of new Rule 2821 until 180 days after the SEC either approves or rejects a substantive rule change that FINRA intends to file in the near future.

JORDEN BURT ALERT Eleventh Circuit Affirms Dismissal of Class Action
Mar 17, 2008

Plaintiffs' class action lawyers often sue for alleged violations of state insurance unfair trade practices statutes or insurance regulatory statutes, even though many such statutes or regulations do not provide private causes of action. The argument used by plaintiffs to circumvent the no-private-right-of-action defense is that the alleged violation of the statute or regulation automatically makes the insurance contract an "illegal" or "unlawful" contract which is void as a matter of law. Based on this alleged illegality, class action plaintiffs' lawyers have demanded rescission and a return of all premiums paid by the putative class members, who are alleged to be "innocent" parties to an unlawful contract. This theory could have the potential of creating significant exposure if a large class were to be certified.

JORDEN BURT ALERT IRS Expands Permissible Investors in "Insurance Dedicated" Funds
Mar 7, 2008

The IRS has finalized a regulation that expands the list of holders of beneficial interests in "insurance dedicated" funds so that "look through" treatment is still available in determining whether such funds are adequately diversified.

JORDEN BURT ALERT: FinCEN Clarifies CIP Rule for Broker-Dealers
Mar 6, 2008

On March 4, 2008, FinCEN clarified its position regarding the compliance obligations of introducing and clearing broker-dealers with respect to the customer identification program (CIP) rule for broker-dealers. As a general matter, the CIP rule applies to broker-dealers that are registered or required to be registered with the SEC, which includes clearing and introducing broker-dealers.

JORDEN BURT ALERT Annuity Sales to Seniors: State Legislative Proposals
Feb 21, 2008

Two bills involving annuity sales to seniors have been introduced in the Connecticut legislature. The Connecticut Select Committee on Aging introduced Raised S.B. No. 155, "AN ACT PROHIBITING THE SALE OF VARIABLE ANNUITY CONTRACTS TO SENIORS." In addition, the House Insurance and Real Estate Committee introduced Raised Bill No. 5158, "AN ACT MAKING CHANGES TO THE INSURANCE STATUTES," which requires the Insurance Commissioner to establish standards for sales to seniors.

JORDEN BURT ALERT SEC Adopts Revisions to Form D
Feb 21, 2008

The SEC has recently published rule amendments that modernize and simplify Form D notices of unregistered offerings made in reliance on an exemption provided by Regulation D under the Securities Act of 1933. The amendments require the electronic filing of Form D information. Issuers will be permitted to file Form D information voluntarily on-line when the new electronic filing system becomes available on September 15, 2008. Issuers will be required to file electronically on and after March 16, 2009. Additionally, the rule amendments will require issuers to provide more specific information about the particular offering than previously required.

JORDEN BURT ALERT SEC Proposes Revisions to Adviser Brochures
Feb 21, 2008

The SEC this week proposed revolutionary changes to the "brochures" that investment advisers provide to their clients. The new brochures would disclose more information than is currently required.

JORDEN BURT ALERT Newly Signed Servicemembers Family Leave Law
Jan 29, 2008

On January 28, 2008, President Bush signed into law the Support for Injured Servicemembers Leave Act, as part of the National Defense Authorization Act for Fiscal Year 2008. The Servicemembers Leave Act, sponsored by Senators Christopher Dodd and Hillary Clinton, makes significant amendments to the federal Family and Medical Leave Act of 1993 by granting two new categories of leave to employees with family members in the military: Active Duty Leave and Injured Servicemember Leave. In addition, under certain circumstances, the amended FMLA now requires up to 26 weeks of leave during a 12-month period.

JORDEN BURT ALERT Investments in Subprime Mortgages Result in ERISA Class Action Lawsuits
Jan 24, 2008

A class action lawsuit has been filed against Washington Mutual by the employees participating in the company's 401(k) plan. The complaint alleges numerous violations of ERISA's fiduciary provisions based on Washington Mutual's participation in the subprime mortgage market.

JORDEN BURT ALERT Extension of SEC No-Action Relief
Jan 14, 2008

On January 10, 2008, the staff of the SEC Division of Trading and Markets issued a letter to the Securities Industry and Financial Markets Association extending no-action relief that was originally granted in February 2004, and extended in February 2005 and July 2006, stating that it would not recommend enforcement action if a broker-dealer treated an investment adviser as if it were subject to an anti-money laundering program ("AML Program") rule for purposes of the broker-dealer customer identification program ("CIP") rule. Without the extension, the no-action relief was scheduled to terminate on January 12, 2008, because the U.S. Treasury Department's Financial Crimes Enforcement Network has not yet adopted a rule requiring investment advisers to have an AML Program.

Duhaime Article Published in Connecticut Lawyer
Nov 19, 2007

Washington partner Richard Choi wrote "ETFs - Coming Soon to a Variable Annuity Near You" in the March issue of NAVA Outlook, the newsletter of the National Association of Variable Annuities distributed monthly as part of Annuity Market News.

JORDEN BURT Alert: Regulation D Changes Would Expand Marketing To Wealthier Investors
Oct 22, 2007

The Securities and Exchange Commission has proposed revisions to its Regulation D under the Securities Act of 1933 that, if adopted, would permit limited advertising in securities offerings made to "large accredited investors," a new category of offerees under the Regulation.

JORDEN BURT Alert: ERISA Nationwide Class Action Complaint Filed Agains
Oct 4, 2007

Recently, a nationwide class action suit was filed in the United States District Court of Iowa against Principal Financial Group, Inc. and Princor Financial Services Corporation for various violations of ERISA's fiduciary provisions.

JORDEN BURT Alert: SEC Approves New FINRA Rule 2821
Sep 12, 2007

On September 7, 2007, the SEC approved FINRA Rule 2821, which imposes new broker-dealer sales practice, supervisory, and training requirements for purchases and exchanges of deferred variable annuities (VAs).

JORDEN BURT: SEC Seniors Summit Registration Information
Aug 24, 2007

As reported earlier this month, the SEC will convene its second annual Seniors Summit in Washington, DC on September 10, 2007.

JORDEN BURT Alert: DOL Amends Civil Penalty Provisions to Reflect Failure to Provide Employees Notification Regarding Right to Sell Employer Stock
Aug 15, 2007

On August 10, 2007, the U.S. Department of Labor (the "Department") published in the Federal Register a direct final rule amending ERISA's civil penalty regulation to reflect the recent amendments mandated by the Pension Protection Act of 2006 (the "PPA") regarding notification to employees of their right to sell employer stock.

Bohn to speak at ABA Annual Meeting
Aug 12, 2007

On August 12th, Elizabeth Bohn will speak on the Supreme Court's decision in Safeco Ins. v Burr at the ABA Banking Law Committee Forum at the ABA Annual Meeting in San Francisco.

JORDEN BURT Alert: SEC Summit to Investigate Fraud Against Senior Citizens
Aug 8, 2007

On September 10, 2007, the SEC will convene its second annual Seniors Summit in Washington, DC, the announced purpose of which is to combat investment fraud against senior citizens.

JORDEN BURT Alert: Supreme Court decides "willful" includes "reckless" under the Fair Credit Reporting Act ("FCRA")
Jun 26, 2007

The FCRA requires users of consumer credit reports to send notice to consumers subjected to "adverse action . . . based in whole or in part on any information contained in a consumer [credit] report." An "adverse action" is "action taken or a determination adverse to interests of consumer," and includes a denial of or increased charges for credit or insurance.

JORDEN BURT Alert: No Class Certification for Retired MetLife Agents
Jun 8, 2007

MetLife won an important battle on May 31, 2007 when it succeeded in defeating a motion for class certification in a lawsuit brought against it by three former P&C agents. The lawsuit, filed in the Southern District of New York, claims that MetLife promised the agents they would to receive commissions for the remainder of their lives on any P&C business they secured, even after they retired, so long as the policies remained in force with MetLife.

PRESS RELEASE: Ann Young Black Elected to NAFA Board
May 3, 2007

Ann Young Black, a partner with the law firm of Jorden Burt LLP, has been elected to a three-year term on the Board of Directors of the National Association for Fixed Annuities (NAFA).

PRESS RELEASE: Benson Receives Anti-Money Laundering Specialist Certification
May 3, 2007

Karen A. Benson, an associate with the law firm of Jorden Burt LLP, passed the Certification Examination for the Association of Certified Anti-Money Laundering Specialists (ACAMS).

JORDEN BURT Alert: DOL and SEC Concerned About 401(k) Plan Fees Disclosure
May 2, 2007

In response to recent revenue-sharing litigation, recommendations from its ERISA Advisory Council and recommendations contained in the recently issued GAO report on plan fees, the DOL's Employee Benefits Security Administration published a request for information in the Federal Register on April 25, 2007, seeking comments regarding fees and expense-related disclosure to 401(k) plan participants and beneficiaries.

JORDEN BURT Alert: Eleventh Circuit Tightens Removal Standards Under Class Action Fairness Act
Apr 17, 2007

On April 11, 2007, the Eleventh Circuit Court of Appeals issued a lengthy decision addressing removal under the "mass" action provision of the Class Action Fairness Act ("CAFA"), including several issues of first impression and a number of issues affecting removals in general.

Cohen Article Published in The Investment Lawyer
Apr 9, 2007

Washington partner Gary Cohen wrote "Indexed Investment Products: Are They Securities?" in the February 2007 issue of The Investment Lawyer.

JORDEN BURT Alert: Court Strikes Down Rule 202(a)(11)-1 Under the Advisers Act
Apr 2, 2007

On March 30, 2007, the U.S. Court of Appeals for the D.C. Circuit ruled in favor of the Financial Planning Association, striking down the highly contentious Rule 202(a)(11)-1 under the Investment Advisers Act of 1940. The court's action may require many broker-dealer firms - including those distributing insurance products - to re-evaluate key practices.

Metropolitan Corporate Counsel Interviews Goldberg and Pflepsen on ERISA Litigation Handbook
Apr 2, 2007

Steve Goldberg and Wally Pflepsen were interviewed by Metropolitan Corporate Counsel on the recent publication of the ERISA Litigation Handbook, Third Edition.

Choi Article Published in NAVA Outlook
Mar 12, 2007

Connecticut partner Diane Duhaime wrote "Victoria's Secret Case in 2003 Leades Nation to Trademark Dilution Revision Act of 2006" in the October 2007 issue of Connecticut Lawyer.

JORDEN BURT Alert: IRS Launches Anti-Money Laundering Compliance Exams in the Insurance Industry
Mar 8, 2007

Fourteen insurance companies of various sizes have been selected by the U.S. Internal Revenue Service to undergo the first anti-money laundering (AML) compliance examinations in the insurance industry. The IRS is one of eight federal regulatory agencies that conduct AML compliance examinations, and is primarily responsible for the insurance industry.

PRESS RELEASE: Fine Arts Lamps Defeats Chinese Manufacturer and French Distributor in Two Copyright Cases
Feb 28, 2007

Courts in both China and France have ruled in favor of Fine Art Lamps, an international manufacturer of decorative lighting, in two separate copyright infringement lawsuits. Fine Arts Lamps filed lawsuits after it became aware that its copyrighted designs were being infringed by a lamp manufacturer located in China and a lamp distributor in France. The courts ordered the defendants to stop all sales of the infringing designs and to stop printing and distributing the infringing catalogs. The decision was recently identified by the Beijing No. 2 Intermediate People's Court as one of its "Top 10" intellectual property cases of 2006.

JORDEN BURT Alert: DOL Issues Interim Guidance On Cross-Trading Prohibited Transaction Exemption
Feb 22, 2007

The Pension Protection Act provides a new statutory prohibited transaction exemption for any transaction described in ERISA �� 406(a)(1)(A) and 406(b)(2) involving the purchase and sale of a security between a plan and any other account managed by the same investment manager providing certain conditions are satisfied. One of the key conditions is that the investment manager adopt, and cross-trades are effected in accordance with, written cross-trading policies and procedures that are fair and equitable to all accounts participating in the cross-trading program.

JORDEN BURT Alert: US Supreme Court Vacates $80 Million Punitive Award
Feb 21, 2007

In a 5-4 decision much anticipated by business clients across the country, the United States Supreme Court yesterday reversed an Oregon jury's $79.5 million punitive damages award against cigarette manufacturer Philip Morris.

Leshine article Published in Metropolitan Corporate Counsel
Feb 13, 2007

Connecticut partner Bruce Leshine's article, "Can Technology Lawyers Create Better Value?" was published in the February 2007 issue of the Metropolitan Corporate Counsel.

JORDEN BURT Alert: DOL Clarifies the "Level-Fee" Requirement of the new Investment Advice Exemption
Feb 6, 2007

On February 2, 2007, the Department of Labor (the "Department") issued Field Assistance Bulletin 2007-1 providing guidance relating to the investment advice provisions of the Pension Protection Act of 2006 ("PPA"), including clarification of the "level-fee" requirement of an "eligible investment advice arrangement." Under such an arrangement, any fees (including any commission or other compensation) received by the fiduciary adviser for the investment advice must either be the same regardless of the investment option selected or must be determined by use of a computer model that meets certain statutory requirements.

JORDEN BURT Alert: NASD Fines Broker-Dealer For Failing to Follow Anti-Money Laundering Rules
Feb 5, 2007

Imposing the largest fine to date against a brokerage firm for anti-money laundering (AML) violations, on January 29, 2007, the NASD placed firms on notice: Broker-Dealers must implement and enforce AML programs that include appropriate procedures to address high risk accounts. NASD's enforcement action comes on the heels of recent government reports concerning potential money laundering risks associated with shell companies.

Cohen Article Published in The Investment Lawyer
Jan 31, 2007

Washington partner Gary Cohen wrote "Fund Director Approval of Advisory Contracts: Shareholder Report Disclosure" in the January 2007 issue of The Investment Lawyer.

Goss to Serve on Connecticut E-Discovery Panel - e-Discovery Resources Link
Jan 31, 2007

Washington partner Roland Goss will be a panelist at The Hartford County and Connecticut Bar Association's Panel Discussion on New Developments in E-Discovery in the Federal and State Courts in Connecticut. The discussion will take place January 31, 2007 in Hartford, CT. For more information visit www.hartfordbar.org. Click on the link above to access full conference materials.

JORDEN Burt Alert: NAIC Issues Guidance on Risk-Focused Examinations
Jan 26, 2007

As reported in our Alert of October 3, 2006, the National Association of Insurance Commissioners ("NAIC") was proposing important changes to its Financial Condition Examiner's Handbook (the "Handbook") relating to a revised risk-focused examination approach. Those changes were recently adopted, and they have resulted in the NAIC receiving numerous requests from the insurance industry for information on the new examination approach.

Sconzo and Sterling article Published in Connecticut Law Tribune
Jan 26, 2007

Connecticut partner James Sconzo and associate Jonathan Sterling's article, "Financial Services Sector Targeted in Litigation" was published in the January 2007 issue of the Connecticut Law Tribune.

Boros Elected to Retirement Board Association
Jan 25, 2007

On January 25, 2007, Washington partner Joan Boros was elected to the Board of Directors of the Retirement Income Industry Association (RIIA). RIIA's mission is to assist the financial services industry's development of the products, processes and services Americans need to solve their retirement income challenge.

JORDEN BURT Alert: CFTC Adopts New Electronic Filing Requirement
Jan 25, 2007

Effective February 15, 2007, persons claiming relief from regulation or registration as commodity pool operators or commodity trading advisors under regulations 4.5, 4.7, 4.12(b), 4.13, and 4.14(a)(8) of the Commodity Futures Trading Commission will be required to file electronically their notices of exemption or exclusion with the National Futures Association through its electronic exemption filing system. The rule amendments will no longer require persons filing such notices with NFA to do so in paper form.

JORDEN BURT Alert: Federal Court Dismisses "Guaranteed Renewable" Long-Term Care Insurance Class Action
Jan 3, 2007

On December 12, 2006, the United States District Court for the Eastern District of Pennsylvania dismissed with prejudice a putative nationwide class action regarding "guaranteed renewable" Long-Term Care insurance. Dismissal of this case is a welcome departure from the prevailing trend in "guaranteed renewable" Long-Term Care litigation where plaintiffs have avoided summary judgment and, in some instances, achieved certification of statewide or nationwide classes.

James Jorden article Published in Metropolitan Corporate Counsel
Dec 20, 2006

Managing Partner James Jorden's article, "A Trial Lawyer's Perspective On Compliance And Risk Assessment" was published in the December 2006 issue of Metropolitan Corporate Counsel.

JORDEN BURT Alert: Department of Labor Finds That NASD Registered Reps Not Entitled to Overtime Pay
Dec 19, 2006

In response to growing litigation and concerns from the financial services industry, on November 27, 2006, the United States Department of Labor issued Opinion Letter FLSA2006-43, which opines that registered representatives employed in the securities and financial services industries as account executives, broker-representatives, financial representatives, financial consultants, financial advisors, investment professionals, and stock brokers generally are exempt from the overtime provisions of the federal Fair Labor Standards Act.

JORDEN BURT Alert: Revenue Sharing Lawsuit Filed Against Nationwide
Dec 8, 2006

On November 15, 2006, a purported nationwide class action was filed against Nationwide Life Insurance Co. and certain affiliates in the United States District Court for the Southern District of Ohio. The complaint alleges that Nationwide's receipt and retention of revenue sharing fees constitutes breaches of Nationwide's common law fiduciary duties to the 457 plans and unjust enrichment.

JORDEN BURT Alert: Financial Firms Feud Over Departing Employees
Nov 21, 2006

On November 10, 2006, The Wall Street Journal ran the story "The Breakup: When Brokerage Houses Attack, " chronicling the lawsuit filed by Milwaukee-based Robert W. Baird & Co. against three former employees who left to start their own rival firm.

Sconzo article Published in Metropolitan Corporate Counsel
Nov 20, 2006

Connecticut Partner James Sconzo's article, "Financial Services Industry Prime Target For Wage And Hour Claim" was published in the November 2006 issue of the Metropolitan Corporate Counsel.

JORDEN BURT Alert: New Nationwide "Revenue Sharing" ERISA Class Action Filed Against Principal Life Insurance Company
Nov 10, 2006

A nationwide class action lawsuit has been filed against Principal Life Insurance Company in the United States District Court for the Southern District of Illinois alleging breaches of fiduciary duty under ERISA by Principal in connection with its alleged receipt of "revenue sharing fees" from mutual funds which are included by Principal in "pre-packaged" retirement plans offered to employers.

JORDEN BURT Releases Analysis of Seven Key Points from SEC's Final Rule 22c-2 Release
Oct 23, 2006

Jorden Burt has released an analysis of certain key points from the SEC's recent release finalizing Rule 22c-2. The points we have selected for discussion are those that are of particular importance to insurers of variable insurance products and their underlying mutual funds as they negotiate and implement the "Shareholder Transaction Agreements" required by the rule.

JORDEN BURT Alert: NAIC Working Group Finalizes "Risk-Focused" Examination Guidance
Oct 4, 2006

During an October 3, 2006 conference call, the NAIC's Risk Assessment Working Group approved an important change to the NAIC's Financial Condition Examiners Handbook (the "Handbook"). This change to the Handbook -- incorporating a more robust "risk focused" examination approach -- will become effective in December if, as expected, the Commissioners formally approve the new Handbook at the upcoming NAIC Winter National Meeting.

Jorden Burt Launches ReinsuranceFocus.com
Oct 1, 2006

Washington, DC, October 1, 2006 -- Jorden Burt, an insurance and financial services regulatory and litigation law firm, has launched Reinsurance Focus (www.reinsurancefocus.com). Reinsurance Focus is an Internet blog containing a broad range of information relating to reinsurance.

JORDEN BURT Securities and Mutual Funds & Investment Advisers Alert: NASD Publishes New Requirements for Mutual Fund Performance Sales Material
Sep 7, 2006

New disclosure requirements for mutual fund performance sales material will go into effect on April 1, 2007.

JORDEN BURT ERISA Alert: Ninth Circuit Adopts New Standard of Review in Conflict of Interest Benefits Cases
Sep 5, 2006

On August 15, 2006, the Ninth Circuit Court of Appeals issued an en banc opinion in Abatie v. Alta Health & Life Insurance. The decision establishes for that circuit a new standard of review of a plan administrator's decision to deny ERISA benefits when the administrator operates under an apparent conflict of interest or where the process is irregular. Under the new standard, where there is an apparent conflict, courts in the Ninth Circuit should now apply an abuse of discretion review, "tempered by skepticism commensurate with the plan administrator's conflict of interest."

Leshine Article Published in Outsourcing Journal
Sep 1, 2006

"Clinical Information System Implementations: A 'Three-Way' Street", written by Connecticut partner Bruce Leshine, was published in the July 2006 issue of the Outsourcing Journal. Following is an excerpt from the article: The centerpiece of many current Healthcare Information Technology (HIT) outsourcing initiatives is the buyer's (Buyer's) decision to implement a new Clinical Information System (CIS) as a principal part of the HIT outsourcing. Unfortunately, Buyers have traditionally gone down one of two roads with their IT outsourcing supplier (Supplier) in accomplishing their CIS objectives-neither path being the best route to a successful CIS implementation. For the full story, visit Outsourcing Journal at http://www.outsourcing-journal.com/jul2006-legal.html.

Valerio Article Published in The Investment Lawyer
Sep 1, 2006

Connecticut partner Michael Valerio's article, "Putnam Fiduciary Trust Company: A Seaboard Report for Regulated Entities" was published in the June 2006 issue of The Investment Lawyer.

JORDEN BURT ERISA and Life Insurance Alert: President Signs Broad Pension Legislation Into Law
Aug 17, 2006

On August 17, 2006 the President signed into law the Pension Protection Act which makes a number of sweeping changes to the Nation's retirement system.

JORDEN BURT Securities Alert: NASD Issues Guidance on Sales of Variable Life Insurance Settlements
Aug 10, 2006

On August 9, 2006, NASD issued Notice to Members (NTM) 06-38 that focuses on member obligations when recommending or facilitating sales of variable life insurance policies to third parties, including suitability, due diligence, best execution, supervision and training, and compensation. The NTM coincided with a Wall Street Journal editorial piece, discussing the rapid international growth in different types of life insurance settlements being packaged into securities, sold to institutional investors, and even offered as traded funds for smaller investors.

JORDEN BURT ERISA Alert: Labor Department Proposes Expanded Exposure on Form 5500
Jul 25, 2006

As reported in our ERISA Alert of April 27, 2006, the Department of Labor ("Department") has issued proposed regulations significantly expanding the reporting on Form 5500 Annual Return/Report.

JORDEN BURT Securities and Mutual Funds & Investment Advisers Alert: Regulators Continue to Clamp Down on Sales to Seniors
Jul 19, 2006

A "Senior Summit" roundtable hosted by the SEC on July 17, 2006 shows that sellers of financial products should thoroughly review their practices and policies with respect to sales to senior citizens, if they have not already done so.

JORDEN BURT Life & Health Insurance Alert: Florida Supreme Court Reverses $145 Billion Punitive Damages Award
Jul 11, 2006

On July 6, 2006, the Florida Supreme Court issued its decision in Engle v. Liggett Group, Inc., the so-called Florida Smokers' Class Action. The essentially split decision (4-2, with Justice Cantero recusing) affirmed the intermediate appellate court's reversal of the $145 billion class-wide punitive damages award. It also held that the use of multi-phase trial plan was not an abuse of discretion by the trial court, and that certain common liability findings made in the Phase I trial would be res judicata for the individual trials that would be needed to establish the claims of some 700,000 individual class members who were given a year to file their individual actions. The court also ordered the class to be decertified going forward because issues such as causation and apportionment of fault among the defendant tobacco companies are "highly individualized and do not lend themselves to class action treatment." The court's reversal of the punitive damages award was based on its view (the only unanimous holding in the opinion) that the trial court erred in allowing the jury to determine the lump-sum amount of punitive damages for the class as a whole before it had determined the amount of total compensatory damages for the class. "As a matter of law," the court explained, "the punitive damages award violates due process because there is no way to evaluate the reasonableness of the punitive damages award without the amount of compensatory damages having been fixed." The court added that amount of the punitive damages award was "also clearly excessive because it would bankrupt some of the defendants."

Choi Quoted in IGNITES article
Jun 28, 2006

Washington partner Richard Choi was quoted in the June 28, 2006 IGNITES article. The article "Simplified VA Disclosure Not So Simple" discusses concerns that arise with variable annuity products and the way information is disclosed. Richard stated, "You seem to lose focus in the course of the sale when you start focusing on how the product works without putting it in the context of what it is supposed to do."

JORDEN BURT Mutual Funds & Investment Advisers Alert: SEC Holds Mutual Fund Interactive Data Roundtable
Jun 13, 2006

The SEC is pursuing disclosure reform for operating companies in general and mutual funds in particular. On June 12, 2006, the SEC held the first in a series of roundtables to explore the use of interactive data in disclosure documents. (Interactive data are financial or non-financial data that are electronically tagged so that the user -- offeree, shareholder or analyst -- can arrange or manipulate the data for the user's individual needs.)

JORDEN BURT Securities Alert: FinCEN Issues AML and SAR Guidance to Insurance Companies
Jun 1, 2006

On May 31, 2006, FinCEN issued guidance in the form of Frequently Asked Questions ("FAQs") to assist insurance companies in understanding the scope and requirements of the anti-money laundering ("AML") program rule and suspicious activity reports ("SARs") rule.

JORDEN BURT Mutual Funds & Investment Advisers and Securities Alert: Important SEC Staff Position on Commission Payments to Insurance Agencies
May 26, 2006

On May 8, 2006, the SEC staff issued a letter to M Financial Holdings, Inc. that may cause insurers and distributors to revisit their compensation arrangements for sales of variable annuities, variable life insurance policies, market value adjustment and other insurance products that involve securities ("Securities Products").

JORDEN BURT ERISA Alert: Labor Department Announces Plans to Expand Fee Disclosure Under ERISA
Apr 27, 2006

The Labor Department has embarked on a three step process to require increased disclosure of fees and other compensation under ERISA by service providers to plan fiduciaries and by plan fiduciaries to plan participants. The three step process was discussed at the Department of Labor Conference, April 24-25, 2006.

JORDEN BURT ERISA Alert: New York Insurance Department Prohibits the Use of Discretionary Clauses in Health and Accident Insurance Policies
Apr 26, 2006

On March 27, 2006, the New York Insurance Department issued Circular Letter Number 8 declaring that the use of discretionary clauses in accident and health insurance policies violates New York insurance law. It reasoned that such provisions "encourage misrepresentation or are unjust, unfair, inequitable, misleading, deceptive, or contrary to law or to the public policy of this state."

Bohn Article Published in Business Law Today
April 2006

Miami partner Elizabeth Bohn's article, "The New Bankruptcy Law and Business Bankruptcies: What will be the future of 'Reorganization'?", will appear in the April issue of Business Law Today, a publication of the ABA Business Law Section.

Goss Article Published in West Insurance Litigation Reporter
March 2006

Washington partner Roland Goss' article, "Liability Insurance/Advertising Injury" appears in Volume 28, No. 2 of the West Insurance Litigation Reporter.

JORDEN BURT Life & Health Client Alert: NAIC Revisits Annuity Suitability
Feb 28, 2006

Following the urging of North Dakota Commissioner Jim Poolman for the NAIC to develop standards for suitability for all sales of life insurance and annuities, the NAIC Life Insurance and Annuities (A) Committee voted on February 23 to expose a new draft annuity suitability regulation. The (A) Committee agreed to propose the modification of the current Senior Protection in Annuity Transaction Model Regulation by deleting the term "senior" and instead refer only to "consumer" and by deleting the definition of "senior consumer."

JORDEN BURT Broker-Dealer Client Alert: Labor Department Updates Insurance Agent and Broker-Dealer Prohibited Transaction Exemptions
Feb 7, 2006

On February 3, 2006 the Labor Department issued favorable amendments to Prohibited Transaction Exemptions ("PTE") 75-1 and 84-24 that will provide greater flexibility to plans to engage in transactions with a greater number of financial institutions and insurers, if certain conditions are met.

JORDEN BURT ERISA Client Alert: Treasury Issues Guidance on Sharing Suspicious Activity Reports
Feb 6, 2006

On January 20, 2006, the Financial Crimes Enforcement Network (FinCEN) issued guidance permitting broker-dealers, among others, to share suspicious activity reports (SARs) with their parent entities, both domestic and foreign.

Bohn and Gerstin Article Published in ICFAI Journal
January 2006

"Federal And State Regulation of Consumer Collection Practices: Traps for the Unwary Nationwide Lender, Loan Servicer, and Debt Collector," an article written by Elizabeth M. Bohn and Ari H. Gerstin, partner and asociate in the Miami office, was published in the January 2006 issue of the ICFAI Journal of Banking Law, which is published by the ICFAI Law School in India. The article was originally published in the American Bankruptcy Journal in May 2005.

Gould quoted in IGNITES article
Jan 10, 2006
IGNITES

In the article entitled, "NASD Hits Oppenheimer, CEO Over Self-Reporting," Jason Gould states, "It's unusual to see a CEO of a major firm charged individually, because the CEO is not usually involved in responding to the sort of information request that was at issue. The NASD is trying to send a message to other CEOs who may not otherwise pay close attention to these kinds of proceedings." The article discusses the charges that NASD has brought on Oppenheimer & Co. and its CEO, Albert Lowenthal, of knowingly submitting flawed information regarding its mutual fund sales practice.

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