Law and regulation

The Securities and Exchange Commission has charged Detroit-based Ambassador Capital Management and portfolio manager Derek Oglesby with fraud for investing in risky securities and passing them off to investors, including municipalities, as safe money market funds.

Regulators are closing in on a final Volcker Rule to restrict proprietary trading, dialing up certain requirements related to documentation while providing some flexibility on "market making" activities. This story includes a fully interactive timeline on Volcker's contentious history.

The National Association of Independent Public Finance Advisors has sent an open letter to Securities and Exchange Commission chairman Mary Jo White insisting the municipal advisor rule the SEC adopted in September will not restrict the flow of information between issuers and other parties to a bond deal.

The National Association of Bond Lawyers may consider creating guidance on how attorneys can reasonably rely on tax certificates, following the false certifications market professionals provided for deals involving investment contracts that came to light in criminal bid-rigging cases.

The Municipal Securities Rulemaking Board has issued new educational materials for issuers explaining what information dealers should make public about their contributions to campaigns to get voters to approve bond offerings.

FirstSouthwest, a Texas-based broker-dealer and financial advisor, has protested two request for proposals for financial advisors issued by Los Angeles that bar underwriters from applying.

The Financial Industry Regulatory Authority fined five firms $255,500 and fined and suspended an individual for violations of municipal securities rules.

The Securities Industry and Financial Markets Association is considering launching a campaign urging municipal issuers to lobby federal regulators and lawmakers against underwriter restrictions contained in the Securities and Exchange Commission’s final municipal advisor registration rule.

Dealers want to extend the implementation of the Municipal Securities Rulemaking Board's suitability rules and lengthen the time they have to disclose purchases of municipal bonds. They also want it made clear that a broker-dealer has reduced duties to sophisticated municipal market professionals.

Bankrupt Jefferson County, Ala.'s former financial advisor James White revealed "privileged" information and violated his fiduciary duties, attorneys for the county claim.

Issuers can take advantage of the independent municipal advisor exemption in order to get the advice of underwriters and other professionals who would otherwise be unable to offer it, according to a paper the Government Finance Officers Association has published about the Securities and Exchange Commission's final MA registration rule.

The Securities Industry and Financial Markets Association is recognizing Christopher Hamel, managing director and head of the municipal finance group at RBC Capital Markets, for his contributions to the municipal securities industry.

The American Bankers Association has issued guidance designed to help members determine if they need to register as municipal advisors under the Securities and Exchange Commission's registration rule.

WASHINGTON — The Securities and Exchange Commission filed motions arguing it met the burden of proof necessary to move forward with securities fraud allegations against Miami and its former budget director.

The Securities and Exchange Commission's municipal advisor registration rule will appear in the Federal Register Nov. 12, starting the 60-day countdown until it becomes effective Jan. 13.

The Securities and Exchange Commission Friday announced that LeeAnn Gaunt will lead its enforcement division's municipal securities and public pensions unit, replacing Elaine Greenberg, who left to join a law firm.

The SEC's enforcement action against participants in the Regional Events Center Public Facilities District's arena deal shows that the commission will not shy from seeking financial penalties against municipal issuers and transaction participants, market participants said.

In response to a recent commentary on the Securities and Exchange Commission's approval of a final rule defining municipal advisors, SIFMA agrees with Ms. Rodgers Caruso on an important point.

Rep. Randy Hultgren, R-Ill., a member of the U.S. House Financial Services Committee, is “making municipal finance a priority” and is holding a roundtable on municipal finance and the municipal bond market Thursday at the University of Illinois at Chicago, an aide said.

Securities and Exchange Commission chairman Mary Jo White said Wednesday that a 2012 risk alert on whether underwriters are doing enough to ensure the accuracy of offering documents is an example of how behind-the-scenes SEC action protects investors.