How to Get Out of the Municipal Advisory Business
The Dodd-Frank Act requires municipal advisors to register with the SEC, and as a result, with the Municipal Securities Rule Making Board, or MSRB. The question remained, once registered with the MSRB, how does an entity withdraw?
The MSRB has published a rule proposal and filed it with the SEC which requires notification to the MSRB when municipal advisors have terminated their advisory activities. Since the MSRB categorized the rule filing as non-controversial, the proposal was effective on filing with the SEC.
The proposed rule change consists of amendments to Rule A-15 (on notice of termination of municipal securities activities) that extend the coverage of the rule to municipal advisors that have terminated their municipal advisory activities and expand the circumstances under which notification must be provided to the MSRB to include involuntary terminations and suspensions of regulated activities due to bar or suspension by regulatory agencies or judicial authorities or otherwise, and, with respect to brokers, dealers and municipal securities dealers, expulsion or suspension from membership or participation in a national securities exchange or registered securities association.
Check dodd-frank.com frequently for updates on the Dodd-Frank Act and other important securities law matters.
Contact Steve Quinlivan for more information.