The SEC’S New Municipal-Advisor Rules Go Effective July 1

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The SEC’s new MA Rules become effective July 1, 2014, 17 CFR 240.15Ba1-1 through 1-8 and 15Bc4-1.  Required by Dodd-Frank § 975, the Rules were adopted last year, but the SEC postponed their implementation from January to July 1.  Rel. No. 34-71288 (stayed January 13 until July 1, 2014);  Final Rule, Rel. No. 34-70462, here: http://www.sec.gov/rules/final/2013/34-70462.pdf

The Rules implement a registration regime and impose a fiduciary duty upon any person deemed a Municipal Advisor.  The Rules are very specific about which circumstances and relationships impose that duty and what steps are required for various exemptions or safe-harbors.

Those providing advice to Municipal Entities or Obligated Persons need to assess the effect of the Rules and update their supervision and compliance policies accordingly.  The Securities & Financial Markets Association (SIFMA) recently released a set of Model Documents providing a helpful starting point for some compliance issues, here:

http://www.sifma.org/services/standard-forms-and-documentation/municipal-securities-markets/#MAforms

Additional resources include:

SEC’s Small Entity Compliance Guide

SEC’s FAQs

MSRB Registration Guidance, Reg. Not. 2014-10

 

Topics:  Dodd-Frank, Municipal Advisers, SEC, SIFMA

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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