Ready for the Turn 2009 Boston Financial Client Forum What Can We Expect in a New Regulatory Environment?

Ready for the Turn 2009 Boston Financial Client Forum  Legislative Front – Financial Services Reform  Reaction to perceived causes and contributing factors of financial crisis  Monitoring and managing risk – Systemic Risk Regulator  Closing regulatory gaps – Private advisor registration, OTC derivatives  Protecting consumers – Consumer Financial Protection Agency  Regulatory Front – Aggressive SEC rulemaking and enforcement agenda  Madoff – Custody Rule  Reserve Fund – Money Market Reforms  Short pressure on FS firms – revisiting uptick rule  International Front – Striving For International Coordination?  Proposed EC AIFM Directive The Three Fronts of Regulatory Change

Ready for the Turn 2009 Boston Financial Client Forum  Run on the Reserve Fund  Group of 30 / Volcker and ICI Recommendations  SEC Proposed Rule on Money Market Fund Reform  Key Issues  $1 Fixed NAV vs. Floating NAV  Portfolio Quality  Liquidity  Retail vs. Institutional MMF’s  Operational Considerations of Proposals The Example of Money Market Funds

Ready for the Turn 2009 Boston Financial Client Forum  Congress is just now beginning to consider the key administration proposals  Important to stay involved in the Washington (and international) discussion and educate policy makers on the potential impact of proposed legislation and rules  Example of MA 201 – Massachusetts Privacy Law The Debate Is Just Beginning