Law and regulation

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.

Municipal issuers took an average of 202 calendar days after the end of their fiscal years to disclose audited financial statements, the Municipal Securities Rulemaking Board found in its first ever report on the timing of disclosures.

Dealer groups are urging the Municipal Securities Rulemaking Board to use restraint in developing a best execution rule for the municipal market, warning that a "trade-by-trade" mandate is not feasible and pushing for their own alternative standard.

A federal judge has issued an order for mediation between the City of Miami, Fla. and the Securities and Exchange Commission, a step the SEC said is required for its securities fraud case against the city and its former budget director.

The Municipal Securities Rulemaking Board has withdrawn its proposal to loosen the standard of independence for public board members, citing "unexpected opposition."

Broker-dealer practices may change under the Securities and Exchange Commission’s new municipal advisor registration rule, as the rule encourages firms to establish underwriting relationships with issuers early in order to be exempt from registration.

The Treasury Department's current suspension of state and local government series securities, which started on May 17, is the longest in 17 years, the Pew Charitable Trusts said in paper released Thursday.

The Federal government shutdown will leave most agencies overseeing the bond market mostly operational in the near-term, but the municipal advisor rule’s implementation will be delayed and issuers are worried that Build America Bond payments might be cut off or delayed.

The Municipal Securities Rulemaking Board has seated its new board of directors and named municipal advisor regulations as its top priority for the 2014 fiscal year, MSRB announced Tuesday.

The Securities and Exchange Commission has approved the Municipal Securities Rulemaking Board's proposed rule changes for retail order periods, despite complaints from dealer groups that they will be burdensome and costly.

A new study shows that state and local governments continued to complete their annual financial disclosures at a slow pace of nearly six months after the close of the fiscal year, a longstanding industry complaint that is getting increased attention in the wake of high-profile distress in Detroit and Harrisburg.