SEC Issues Interpretive Guidance on Municipal Advisor Registration Rules

The SEC Office of Municipal Securities issued interpretive guidance regarding the implementation of new final SEC rules requiring municipal advisors to register with the SEC. In the form of an FAQ, the guidance covered the following topics:

• the advice standard, including the general information exclusion and the treatment of business promotional materials used by potential underwriters;
• the request for proposals / request for qualifications exemption;
• the exemption for registered independent municipal advisors;
• the exclusion for registered investment advisers;
• the underwriter exclusion, including engagements as underwriters;
• issuance of municipal securities and post-issuance advice;
• remarketing agent services;
• opinions by citizens in public discourse; and
• the effective date of the final rules and the compliance period for using the final registration forms.

The SEC's final rules on municipal advisor registration were adopted in September 2013, and are effective on January 13, 2014. The SEC provided a phased-in compliance period for municipal advisors to comply with the registration requirement beginning on July 1, 2014 and ending on October 31, 2014.

See: Municipal Advisor Registration Guidance.See also: SIFMA Statement on SEC Muni Advisor Guidance. See generally: Cadwalader's Guide to Municipal Advisor Registration and Regulation by Maurine Bartlett; Securities and Exchange Act Rules Calendar (both accessible to Cabinet subscribers only).Related news: SEC Extends Expiration Date of Effective Period for Exchange Act Rule 15Ba2-6T (September 23, 2013); SEC Press Release on Its Approval of Registration Rules for Municipal Advisors (September 18, 2013); 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).