SEC Announces New Municipal Advisor Exam Initiative

The SEC issued a letter to registered municipal advisors announcing the launch of a new examination initiative that is to be directed by the SEC Office of Compliance Inspections and Examinations ("OCIE").

According to the letter, the new examinations are designed to "establish a presence" with municipal advisors that are registered with the SEC but are not FINRA members. Areas targeted by the examinations will include:

• the municipal advisor's compliance with its fiduciary duty to its clients;
• books and recordkeeping obligations;
• disclosure;
• fair dealing;
• supervision; and
• employee qualifications and training.

The letter also details the specific rules that are included in each of the areas listed above.

See: SEC Letter to Municipal Advisors; Press Release.Related news: MSRB Announces Webinar for MSRB and SEC Municipal Advisor Rules (August 7, 2014); MSRB Publishes Guidance on Its New Registration Requirements Rule (Notice 2014-10) (May 12, 2014); SEC Approves MSRB Rule to Consolidate Registration Rules (February 27, 2014); MSRB Notice 2013-19: Proposed Rule Change to Consolidate Registration Requirements (August 19, 2013); SIFMA Submits Comment Letter to MSRB Regarding Consolidated Registration Requirements (September 23, 2013).