The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law by President Obama on July 21, 2010. The Dodd-Frank Act was enacted in response to the financial crisis that began in 2008 and was intended, among other things, to promote the financial stability of the United States by improving accountability and transparency in the financial system.

One important provision of the Dodd-Frank Act, as it relates to the financing of municipal projects, is to make it unlawful for a municipal advisor to provide advice to or on behalf of a municipal entity with respect to municipal financial products or the issuance of municipal securities, or to undertake a solicitation of a municipal entity, unless the municipal advisor is registered with the United States Securities and Exchange Commission (the “SEC”). Any person/firm that provides such advice or solicits a municipal entity as provided above and fails to comply with the registration requirements of the Dodd-Frank Act could be subject to civil and criminal penalties. In addition to requiring municipal advisors to register with the SEC, the Dodd-Frank Act also imposes a statutory fiduciary duty on municipal advisors when advising municipal entities...