The MSRB issued its 2016 Compliance Advisory for Municipal Advisors . The advisory highlights compliance risks for municipal advisors and provides examples of conduct that could result in violations of various MSRB Rules, including the following: MSRB Rule A-12 ("Failure to Register with the MSRB") MSRB Rule G-3 ("Failure to Ensure That Associated Persons Are Properly Qualified") MSRB Rule G-44 ("Failure to Implement an Appropriate Compliance Program") MSRB Rules A-12, G-3, G-32 and G-34 ("Failure to Recognize When Placement Agent Activity May Be Brokerage Activity") MSRB Rule G-17 ("Failure
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The SEC approved new MSRB rules establishing core standards of conduct for municipal advisors that engage in advisory activities other than solicitation. The SEC approved related amendments establishing recordkeeping requirements that apply when a municipal advisor makes a suitability determination or reviews the recommendation of another party.
In a 2017 Regulatory and Examination Priorities Letter, FINRA identified compliance, supervision and risk management as primary areas for review.
The SEC Investor Advisory Committee meeting will be held on March 9, 2017. The agenda includes review of SEC investor research initiatives, a FINRA 2016 financial capability study, academic research on financial literacy, and unequal voting rights of common stock.
The SEC charged a municipal advisor with defrauding the city of Rolling Fork, Mississippi, in connection with a municipal bond offering.