SEC Press Release on Its Approval of Registration Rules for Municipal Advisors

The SEC voted unanimously to adopt rules establishing a permanent registration regime for municipal advisers as required by the Dodd-Frank Act. The new rule requires a municipal advisor to permanently register with the SEC if it provides advice on the issuance of municipal securities, certain investment strategies or municipal derivatives. The final registration requirement is materially narrower than had been originally proposed; for example, the SEC would not require the registration of persons who were actually employees of the municipality or who were board members of municipal entities. In addition, the final rule does not require registration of entities such as investment advisers and commodity trading advisors who are providing services to municipalities in areas that are within the scope of their existing registration and regulatory requirements. Finally, the rule requires registration of the entity providing the advice, not the individual employees, although information about the employees must be provided.

See: SEC Press Release; SIFMA Comments; Chairperson White's Statement; Commissioner Aguilar's statement; Commissioner Gallagher's statement; Commissioner Stein's statement.See also: Cadwalader's Guide to Municipal Advisor Registration and Regulation by Maurine Bartlett; MSRB Files Amendment to Proposed Rule Change to Rules G-11, G-8 and G-32 (September 9, 2013); SIFMA and GFOA Submit Comments Regarding Proposal to Amend MSRB Retail Order Periods Rules (August 29, 2013); MSRB Notice 2013-18: Market Transparency Advisory (August 12, 2013); MSRB Notice 2013-17: Policy on Issuing Interpretive Guidance (August 8, 2013); SIFMA Proposes "Execution with Diligence" Standard for Munis Trading (with Lofchie Comment) (July 26, 2013).