On March 26, the SEC announced temporary measures to assist market participants in response to COVID-19. The actions include i) temporary relief from Form ID notarization requirements through July 1, ii) extended filing deadlines for certain reports and forms required under Regulation A and Regulation Crowdfunding issuers, and iii) a temporary exemption, subject to certain conditions, for required filings for municipal advisors through June 30. Release.
On October 23, the Municipal Securities Rulemaking Board received approval from the SEC to create the first new rule for municipal advisors since the SEC released its final registration rule for these professionals in September 2013.
The new supervision requirements take effect April 23, 2015, providing firms six months to implement the required policies and procedures. By April 23, 2016, the chief executive officers (or the equivalent) of municipal advisor firms must make the first of their annual certifications in writing that the municipal advisor has in place processes to establish, maintain, review, test and modify written compliance procedures and written supervisory procedures reasonably designed to achieve compliance with applicable rules. MSRB Rule.
On September 18, the SEC unanimously adopted permanent registration rules for municipal advisors as required by the Dodd-Frank Act. The new rule requires an advisor to permanently register with the SEC if it provides advice to state and local governments on the issuance of municipal securities, about certain “investment strategies,” or on municipal derivatives. The new rules will supersede current temporary registration rules and will become effective 60 days after they are published in the Federal Register. Press Release.
On May 31, the MSRB published a concept release seeking comment on a possible proposal to require underwriters and municipal advisors to disclose whether they have made or received certain payments in connection with new issues of municipal securities. Comments must be submitted no later than July 31, 2012. MSRB Concept Release.
On August 10, the MSRB requested comment on: (i) extending its rule on advertisements to cover municipal advisors and (ii) requiring municipal advisors to evidence their engagements in writing and make certain required disclosures. Comments must be submitted by September 14. MSRB Release.
On July 26, the MSRB issued a draft survey seeking information from municipal advisors on the nature of the municipal advisory activities they undertake as well as the manner and level of compensation received for such advisory activities. Comments on the draft survey must be submitted by September 12. MSRB Notice.
On May 25, MSRB proposed Rule G-44 requiring municipal advisors to adopt internal supervisory systems to ensure compliance with applicable MSRB and SEC rules. The proposed rule would establish minimum requirements for such systems, including the manner in which municipal advisory activities will be monitored and supervised. Comments must be submitted by June 24. MSRB Release. Proposed Rule.
On February 14, the MSRB (i) filed with the SEC a proposal to require municipal advisors to notify the MSRB when the advisor ceases to engage in municipal advisory activities and (ii) issued proposals to establish a new municipal advisor fiduciary rule, and provide further guidance to municipal advisors, broker-dealers and banks on fair dealing obligations. Proposed Notification Rule Release. Proposed Fiduciary Duty Rule and Fair Dealing Obligations Release.
On December 20, the SEC proposed a rule, required by the Dodd-Frank Act, which would create a new process by which municipal advisors must register with the SEC. Comments must be submitted within 45 days of publication in the Federal Register. SEC Release. SEC Proposed Rule.
On November 15, MSRB opened its registration system for municipal advisors in response to the Dodd-Frank Act. Municipal advisor firms must register with the MSRB by December 31 in order to engage in municipal advisory activities. MSRB Release.
