Law and regulation

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.

A federal appeals court freed three convicted bid-riggers from prison just before Thanksgiving because the statute of limitations had run out on their alleged violations, according to the court’s newly released opinion.

Rep. Steve Stivers, R-Ohio, is urging the Securities and Exchange Commission to clarify that its municipal advisor registration rule will permit dealers to provide tailored advice to issuers about municipal bonds and then underwrite those bond issues later.

Several federal agencies have approved a final proprietar trading rule that exempts municipal bonds, something market participants asked for.

The SEC should provide guidance to broker-dealers assuring them that they will not be restricted from giving advice to issuers in their roles as underwriters, a congressman told SEC chairman Mary Jo White in a recent letter.

The Securities and Exchange Commission has approved amendments to a Municipal Securities Rulemaking Board rule that would prohibit underwriters or remarketing agents from authorizing changes to bond documents except in limited circumstances.

The Financial Industry Regulatory Authority has fined Oppenheimer & Co. $675,000 for charging unfair prices in municipal securities transactions and for failing to have an adequate supervisory system, FINRA announced Monday.

Los Angeles withdrew two requests for proposals seeking financial advisors that were the subject of a protest letter from Texas-based broker dealer and financial advisor FirstSouthwest, because underwriters were excluded from applying.

The Government Finance Officers Association supports regulating those professionals who provide "advice" to state and local governments and believes that the Dodd Frank Act and the Municipal Advisor rule will help to ensure that those who provide advice have a fiduciary duty to their government clients.

Regulatory officials, analysts and lawyers told state treasurers Wednesday that their approaches to municipal bond disclosure are of the utmost importance in the wake of recent Securities and Exchange Commission enforcement actions.

Three former bankers at GE Funding Capital Market Services, Inc., convicted of fraud and conspiracy for rigging municipal bond investment bids are out of prison following a Nov. 26 decision by the U.S. Court of Appeals for the Second Circuit overturning their guilty verdicts.