Law and regulation

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.

A federal judge has ruled that the Securities and Exchange Commission's fraud case against Miami, Fla. and its former budget director can continue in civil court, denying both defendants' motions to dismiss.

The Securities and Exchange Commission's enforcement division will be very active in the muni space in 2014, experts said, with emphasis on actions against municipal officials and underwriters.

Municipal advisor regulations are likely to be the focus of intense debate in 2014, as the Municipal Securities Rulemaking Board labors to release rules and broker-dealer groups continue to push for interpretations favorable to underwriters.

FirstSouthwest is protesting against "restrictive" conditions included in a request for quotations issued by the Greater Texoma Utility Authority in Texas, which said it will only consider proposals from a financial advisor that is independent from a broker-dealer.

A group of non-dealer advisors on Wednesday released a guide for issuers and municipal advisors, saying it is designed to clear up misconceptions about the Securities and Exchange Commission's municipal advisor rules.

The Securities and Exchange Commission said Tuesday that it has "increased its attention to securities violations by municipalities and other participants in the market for securities of cities and other governmental issuers," but did not give any statistics.

Dan Heimowitz first got into public finance because of a devastating financial crisis in his hometown. Decades later, he's overseeing rulemaking covering a whole new class of regulated firms and individuals.

The Securities Industry and Financial Markets Association has released some best practice guidance designed to help firms comply with the Municipal Securities Rulemaking Board's Rule G-43 on broker's brokers.

The Financial Industry Regulatory Authority fined five firms and three individuals for violations of municipal securities requirements, including Barclays Capital Inc., which was directed to pay $200,000 for using bond proceeds to reimburse itself for membership in a lobbying group.

The Municipal Securities Rulemaking Board has requested public comment on whether to require dealers to ensure that their municipal securities staff receive annual muni bond training.

Additional guidance from the SEC should provide some clarity to how the proposed trading restrictions under its new municipal advisor registration rule apply to municipal issuers, a securities industry official said.

The Municipal Securities Rulemaking Board has created an advisory group and asked users of its Electronic Municipal Market Access, EMMA, website to respond to a survey to better understand how the site is used and how it can be improved.

Ken Bentsen was appointed president and chief executive officer of the Securities Industry and Financial Markets Association on Thursday, replacing former Sen. Judd Gregg, who stepped down to become a senior advisor to the group.