Beginning on October 1, 2010, it will be unlawful under the Dodd-Frank Wall Street Reform and Consumer Protection Act for a municipal advisor to provide certain advice to or solicit municipal entities or obligated persons, unless the advisor is registered with the Securities and Exchange Commission. Earlier today, the SEC announced that it has adopted a temporary rule establishing a means for municipal advisors to comply with this requirement.
For purposes of the SEC rule, a municipal advisor is a person who provides advice to or on behalf of a municipal entity or obligated person with respect to municipal financial products or the issuance of municipal securities, or undertakes a solicitation of a municipal entity. This includes financial advisors, guaranteed investment contract brokers, third-party marketers, placement agents, solicitors, finders, and swap advisors who provide such municipal advisory services. The term does not include municipal entities or their employees; brokers, dealers, or municipal securities dealers serving as underwriters; investment advisers registered under the Investment Advisers Act of 1940; or certain others.
Under the temporary rule, before October 1, municipal advisors must access and complete a temporary registration form online at http://sec.gov/info/municipal/form_ma-t.htm. The form cannot be filed in hardcopy form. Before registering, advisors must establish an account and obtain a username and password with the SEC. The form requires that municipal advisors provide identifying and contact information, pick from a list of advisory activities in which they engage, and provide disciplinary history for the municipal advisors and all associated municipal advisor professionals. The information filed will be made available on the SEC's website.
It is important that municipal advisors obtain confirmation of filing, as regulations provide that municipal advisors who complete the formand receive confirmation from the SEC that the form was filedwill be temporarily registered.
Precisely who must sign the registration form on behalf of the municipal advisor depends on the corporate (or equivalent) form of the organization. There is no filing fee.
This registration rule is a temporary rule, set to expire on December 31, 2011. The SEC plans to release a permanent rule later this year.
The members of Day Pitney's municipal finance team listed on the side of this alert would be pleased to help you navigate this and the other provisions of the Dodd-Frank Act.
On September 24, Day Pitney attorneys Judith Blank, Douglas Gillette, Glenn Rybacki and Namita Shah gave a presentation at the New England States Government Finance Officers Association (NESGFOA) 71st Annual Fall Conference in Mystic, CT.
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Doug Gillette and Bill Goddard will be featured panelists during the UConn School of Law's Symposium on Municipal Distress on Friday, September 15.
On November 22, Connecticut Governor Dannel P. Malloy announced that he is appointing Jay Nolan to serve as his appointee on the state's recently created Municipal Accountability Review Board.
Doug Gillette was quoted in an article, "Assured Says It's Open to a Hartford Debt Restructuring," published in The Bond Buyer.
Day Pitney LLP has once again been recognized as Connecticut's number one bond counsel firm by volume, serving as bond counsel on issues in Connecticut totaling approximately $1.7 billion in 2016, according to The Bond Buyer, a daily newspaper serving the municipal bond industry.
Day Pitney Press Release
Hartford, Conn., May 26, 2016 - Day Pitney LLP represented the State of Connecticut as lead bond counsel and disclosure counsel in a general obligation refunding bond sale of $501.4 million. The sale resulted in saving of $75.5 million in debt service costs over the life of the refinanced bonds. The Nappier administration has an active debt refunding program which has saved taxpayers $1.1 billion to date.