Law and regulation

Securities and Exchange Commission Officials confirmed Wednesday that the SEC's office of enforcement will carry the responsibility of overseeing all of the more than 1,100 registered municipal advisors

The Municipal Securities Rulemaking Board will discuss drafts of rules creating a best execution standard for broker-dealers and establishing supervisory requirements for municipal advisors during its next meeting Jan. 29-31 in Atlanta.

Two recent solicitations for financial advisors in Orlando and Los Angeles illustrate the tensions between dealer and non-dealer advisors, as the Securities and Exchange Commission and Municipal Securities Rulemaking Board begin to put in place a regulatory scheme to create a level playing field between the two.

The Financial Industry Regulatory Authority has fined four firms a total of $290,000 for violations of municipal securities rules, including E. J. De La Rosa & Co., which was hit with a $200,000 fine for improperly using bond proceeds to reimburse itself for payments to a lobbying group.

The National Federation of Municipal Analysts has issued a white paper describing best disclosure practices in the primary market, recommending more "plain English" offering documents, clear descriptions of security for bonds, and details about key investment risks.

Dealer groups are warning the MSRB that a proposal to require an hour of annual muni training for their staffs could actually result in less efficient training and could be confusing, in addition to raising compliance burdens.

The Securities and Exchange Commission announced Monday that compliance with the final municipal advisor registration rules will not be required until July 1, the date on which the first set of municipal advisors will be required to register under the final rules.

Sentencing for convicted bid-rigger David Rubin has been pushed back until Feb. 3 and for Mark Zaino until Feb. 11, while Alexander Wright received a light sentence and James Hertz only had to pay $300 in fees.

The Securities and Exchange Commission's municipal securities office added another attorney advisor to its ranks when former McGuireWoods LLP lawyer Cori Shepherd joined in December.

The Securities and Exchange Commission on Friday released long-awaited guidance on its municipal advisor registration rule, less than one business day before the rule becomes effective.

The Municipal Securities Rulemaking Board on Thursday released a new draft rule that would govern the conduct of municipal advisors, alarming broker-dealers who fear a prohibition on business outside of an advisory relationship with an issuer could push dealer-affiliated MAs out of the market.

The Municipal Securities Rulemaking Board has released a new draft rules governing the conduct of municipal advisors, and is requesting comment on whether it should extend a fiduciary duty standard to cover all clients of municipal advisors rather than municipal entity clients exclusively.

Two groups are asking the Securities and Exchange Commission to delay the municipal advisor rule compliance deadline until July 1 for asset managers who manage swaps or securities-based swaps in the portfolios of their municipal clients. They also asked for an exemption from the rule.

The Municipal Securities Rulemaking Board's revenue fell 2% in fiscal year 2013 from the previous year, due to decreases in revenue from both underwriting fees and fines for rule violations, according to data included in the self-regulatory organization's annual report.

The Municipal Securities Rulemaking Board on Thursday will propose core standards for the conduct of municipal advisors, including regarding their fiduciary duty to put clients' interests first, disclosure and professional conduct responsibilities, and required expertise.

The Depository Trust Co. has submitted to the Securities and Exchange Commission a flat fee increase for multi-CUSIP municipal bond transactions, rather than the higher per-CUSIP fees it discussed earlier that riled market groups.

The National Federation of Municipal Analysts announced Susan Dushock as its new chairman and other new board of governors officers for 2014 on Monday.

The Municipal Securities Rulemaking Board is seeking applications to fill seven spots that become available Oct. 1.

The Securities Industry and Financial Markets Association is very concerned about the imminent effective date of the new municipal advisor rule.

The Financial Industry Regulatory Authority has identified the suitability of the bonds of distressed municipalities for investors, as well as municipal advisor activity, as areas it will focus on in 2014.