Law and regulation

The Greater Wenatchee, Wash., Regional Events Center Public Facilities District has agreed to pay $20,000 — the first financial penalty the SEC has assessed against a municipal bond issuer — to settle Securities and Exchange Commission charges that it misled investors of bonds used to finance the construction of an events center and ice hockey arena.

The Municipal Securities Rulemaking Board announced Monday that it has begun a multi-year campaign to expand outreach to state and local issuers, emphasizing how they can use the MSRB's EMMA website for disclosure compliance and education.

Dealer groups are telling the Municipal Securities Rulemaking Board that they worry too much pricing data will confuse investors and hurt the secondary market.

Groups active in the municipal market are urging federal agencies to exempt tender option bonds and nonprofit and state agency student loan organizations from risk retention rules imposed by the Dodd-Frank Act.

Miami and its former budget director Michael Boudreaux are urging a federal district court to dismiss the securities fraud charges the Securities and Exchange Commmision filed against them in July for disclosure failures.

The Municipal Securities Rulemaking Board is prioritizing a best execution rule for the municipal market, and also decided rules governing municipal advisors, beginning with a fiduciary duty rule.

Jay Goldstone, former Municipal Securities Rulemaking Board chair, was hired as a managing director in the Public Finance Group of the Bank of Tokyo-Mitsubishi UFJ.

NAIPFA supports the practical, common-sense approach taken by the SEC and its office of municipal securities in writing its final municipal advisor rules, and believes that they will directly benefit the interests of issuers by creating a more robust, fair, competitive and transparent municipal market.

Federal regulators should employ different approaches to different financial markets in implementing the Volcker Rule, according to a report issued by the Bipartisan Policy Center.

About 2,899 issues of Build America Bonds totaling $184.95 billion were issued in 2009 and 2010, according to statistics collected by the Internal Revenue Service, some of which were recently released.

The Municipal Securities Rulemaking Board’s board of directors will discuss a possible best execution rule and municipal advisor regulation during its meeting in Alexandira, Va. this week, the MSRB announced.

The Treasury Department announced Thursday that it is resuming the sale of state and local government series securities at 1 p.m., EDT, after the longest suspension in 17 years.

Sentencing for convicted bid-rigger David Rubin has been pushed back to Dec. 3 from Oct. 18, at the request of defense attorneys who said they needed more time to prepare an analysis disputing the $11.5 million of restitution federal prosecutors are seeking.

Roughly $23 million of tax-exempt senior lien revenue bonds issued in 2003 to finance a jail may be taxable private activity bonds, an Internal Revenue Service agent has told the West Texas Detention Facility Corp.

The Securities and Exchange Commission's Office of Municipal Securities will gain another attorney next month when Goldman Sachs' Edward Fierro comes aboard Nov. 4.

The Financial Industry Regulatory Authority has fined three firms a total $115,000, and ordered two of them to pay $35,441 of restitution to customers, for violating municipal securities fair pricing, fair dealing and primary offering disclosure rules.

Broker-dealer firms can do more to manage conflicts of interest in their businesses, including by taking steps to deal more transparently with retail investors, according to a report published by the Financial Industry Regulatory Authority.

Regulators warned brokers at a Bond Dealers of America conference not to play loose with municipal securities rules, and asked them to report competitors they suspect.

Non-dealer municipal advisors are unsure which employees at their firms must register as MAs under the Securities and Exchange Commission’s new rule, and want further guidance from both the SEC and Municipal Securities Rulemaking board about how their businesses will be affected by the rule.

Leaders of financial groups and Treasury Secretary Jack Lew warned Thursday that brinkmanship over the debt limit is already hurting the financial markets and that a default would have catastrophic impacts domestically and globally, making it harder to deal with long-term U.S. debt issues.