March 23, 2010 -- The Senate Committee on Banking, Housing and Urban Affairs yesterday approved comprehensive financial regulatory reform legislation.

Jorden Burt's Task Force has issued a detailed Bulletin, available here, that discusses important ways in which this legislation would affect some of our core client groups.

For your convenience, we set forth below an outline of the Bulletin's contents:

I. Measures to Directly Control Systemic Risks  

A. Financial Stability Oversight Council  

B. Enhanced Prudential Regulation  

1. Fed Supervision of Certain Nonbank Financial Companies  

2. Enhanced Prudential Regulation Recommendations to Primary Regulators  

3. Extraordinary Fed Intervention in Certain Cases  

C. Resolution Authority  

1. Initiating Liquidation Process  

2. Administering Liquidation Process  

II. Insurance Regulation  

A. Office of National Insurance  

B. International Agreements and Preemption of State Insurance Measures  

C. Information Gathering, Studies, and Reporting  

D. Nonadmitted and Reinsurance Reform Act  

E. Senior Protection

III. Major Changes in How SEC Functions

A. Increased Focus on Investor Protection

1. Investor Advocate

2. Investor Advisory Committee

3. Other Significant Investor Protection Aspects

B. Mandatory Monetary Awards to "Whistleblowers"

C. New Funding Sources for SEC

IV. Certain Investment Advisers Act Reforms, Including "Private Funds"

A. Repeal of "15 Client" Exemption

B. Repeal of Intrastate Exemption for Private Fund Advisers

C. New Exemptions for Advisers to Venture Capital or PrivateEquity Funds

D. New Exemption for Certain Small Business Investment Company Advisers

E. New Exclusion for "Family Offices"

F. Registered Adviser Records for Private Funds

G. Potential Future Regulatory Developments for Private Funds

1. GAO Studies

2. Short Selling Study

H. $100 Million Minimum Assets Under Management for Advisers Act Registrants

V. Developments in SEC's Regulation of Certain Other Products or Activities

A. Reconciling Certain Aspects of Broker-Dealer/Investment Adviser Regulation

1. RAFSA Requirements

2. Relationship to CFTC Regulation of Investment Advice

3. Contrast with H.R. 4173

B. Improving Investor Understanding of Investment Products and Services

C. Mutual Fund Advertising

D. Disclosure by Broker-Dealers Prior to Retail Customer Purchases

E. Pre-Dispute Agreements to Arbitrate

VI. Bureau of Consumer Financial Protection

A. The Bureau and its Director

B. Potentially Comprehensive Nature of CFPA Regulation

C. Persons and Activities Subject to Bureau's Jurisdiction -- General

1. Overview

2. Definition of a Consumer Financial Product or Service

D. Applicability to Insurance Firms

1. Exclusion for Business of Insurance

2. Preservation of State Insurance Regulation

E. Applicability to Securities Firms

1. Exclusion for Persons Regulated by SEC

2. Preservation of Exclusive State Securities Regulation

VII. Possible Loss of "Blue Sky" Exemption for Certain Private Offerings