Legal Seminar, Chicago, IL

• ATO understands that banking departments usually are involved in the legislative process concerning financial institutions. • While much banking legislation may not be applicable to ITCs, please keep ITCs in mind when commenting on potential legislation – frequently, legislation includes reference to “depository institutions”, which is not applicable to most ITCs even though sometimes that is the intent.

Review of Some Current Legal Issues Affecting ITCs: A. Fiduciary Standard – are we really done? • Dodd-Frank Act required SEC to undertake a study reviewing the standard of care for persons providing “personalized investment advice” to “retail customers”. Goal was to determine if the “fiduciary standard” in dealing with individual customers should be applied to brokers as opposed to the “suitability standard”, which had been imposed. • In January 2011, SEC Staff delivered a report recommending that a “fiduciary” as opposed to a “suitability” standard be applied to brokers, the same as investment advisors, trust companies, etc.