Law and regulation

The Municipal Securities Rulemaking Board has proposed a supervision rule for municipal advisors that would subject all MAs to an oversight responsibility similar to what dealers and dealer-affiliated advisors have under existing rules.

The Securities and Exchange Commission has approved a new rule that will require underwriters of 529 college savings plans to submit more in-depth financial information to the Municipal Securities Rulemaking Board twice a year.

The National Federation of Municipal Analysts will ramp up its education efforts on disclosure this year by publishing guidance on general obligation bonds and new issue disclosure, NFMA chair Susan Dushock said.

Dealer groups are unsure whether the Municipal Securities Rulemaking Board's proposed best execution rule is tailored enough for the municipal market, but are pleased it would exempt sophisticated professionals.

The Municipal Securities Rulemaking Board has proposed a best execution rule, a step recommended by the Securities and Exchange Commission that has been mostly resisted by dealers who have warned such a rule would be tough to implement in the muni market.

Standard & Poor's is urging municipal bond issuers to fully disclose their bank loans and other alternative financings, warning these potentially carry considerable credit risk.

Seven firms have been ordered to pay a total of $68,500 in fines and $16,088 in restitution for municipal trade, disclosure, pricing and supervisory violations, according to the Financial Industry Regulatory Authority's monthly disciplinary actions released Tuesday.

The Financial Industry Regulatory Authority has received dozens of filings for arbitration investors who say they were harmed by unsuitable advice doled out by UBS Financial Services of Puerto Rico when the market for the commonwealth's bonds declined.

Former Bank of America executive Phillip Murphy pleaded guilt Monday in a North Carolina federal court to rigging municipal bond investment bids, while convicted bid-rigger Mark Zaino's sentencing has been delayed yet again in New York.

The Securities and Exchange Commission is examining the extent to which dealers using alternative trading systems and broker's brokers are engaged in anti-competitive practices such as blocking or filtering out competitors from being able to bid on their municipal securities.

The Securities and Exchange Commission's fraud case against Miami and its former budget director Michael Boudreaux is on hold pending Boudreaux's appeal of the court's decision to invalidate his effort to claim immunity from the lawsuit.

The Municipal Securities Rulemaking Board unveiled an updated look to its EMMA website Feb. 7, with a focus on improving ease of navigation for new users, the MSRB said.

Fitch Ratings said Thursday that it expects a gradual unwinding or restructuring of tender option bond programs over the next few months since they were not exempted from the Volcker Rule.

The Securities and Exchange Commission's muni office will spend the coming months implementing the final municipal advisor rule and reviewing MA rule filings by the Municipal Securities Rulemaking Board, but the commission needs more resources to meet its expanded responsibilities.

Convicted bid-rigger Michael Welty and two co-defendants are moving for a new trial, claiming the government suppressed evidence in the form of an email that could have allowed Welty to challenge some of the government's claims against him.

Convicted bid-rigger David Rubin should pay more than $11,5 million in restitution to 99 municipal victims who have not been compensated for losses they incurred due to "kickbacks" and depressed interest rates resulting from criminal activity, according to U.S. Justice Department filings with a federal court this week.

WASHINGTON – The Municipal Securities Rulemaking Board has decided to propose an explicit best execution rule for dealers in the municipal market, MSRB officials said Tuesday, calling it "a very significant development for the municipal market."

The Public Finance Network, elected public officials and dealer groups are urging bank regulators to categorize municipal securities as high quality liquid assets in a proposed rule, warning the failure to do so would significantly harm the municipal market and state and local governments.

The Securities and Exchange Commission will spend the next few years acting on the recommendations in its 2012 municipal market report as well as strengthening muni advisor oversight, according to the SEC's draft strategic plan released Monday.

Dealer groups told issuer officials Jan. 30 that they have many unanswered questions under the Securities and Exchange Commission's registration rule, as broker-dealers work to keep municipalities informed about their efforts to comply with the rule before its July 1 effective date.