SEC Announces Exam Initiative Targeting Newly Registered Municipal Advisors

The SEC announced an initiative in which its Office of Compliance Inspections and Examinations (OCIE) plans to examine a significant percentage of newly registered municipal advisors over the next two years using an approach that focuses on identified risk areas.  Areas targeted for scrutiny may include a municipal advisor’s compliance with its fiduciary duty to its municipal entity clients, books and recordkeeping obligations, disclosure, fair dealing, supervision, and employee qualifications and training.  The initiative will have three phases: engagement with municipal advisors, examinations, and use of information obtained during examinations to inform SEC policy.  A letter describing the initiative sent by OCIE to newly registered municipal advisors provides additional details.

Topics:  Dodd-Frank, Municipal Advisers, OCIE, Registration, SEC

Published In: Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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