Law and regulation

A proposal to modify the standard of independence for Municipal Securities Rulemaking Board members is inconsistent with federal law, the National Association of Independent Public Finance Advisors told the Securities and Exchange Commission Sept. 12.

A coalition of mayors from across the country is urging SEcurities and Exchange Commission chairman Mary Jo White not to support structural changes to municipal money market mutual funds, especially the adoption of a floating net asset value.

The Securities and Exchange Commission, Miami, Fla., and the city's former budget director agree they are unlikely to settle a bond-related securities fraud case and that the trial will be lengthy, according to a joint scheduling report they filed with a federal court in Miami.

The Municipal Securities Rulemaking Board has filed revised amendments with the Securities and Exchange Commission seeking to modify earlier rule change proposals governing retail order periods.

Leaders of the National Association of State Treasurers are meeting with regulatory officials and members of Congress this week, urging them to oppose a major money market fund reform proposal and any alteration to the tax-exempt status of municipal bonds.

The Municipal Securities Rulemaking Board sent letter to the Securities and Exchange Commission defending the MSRB's proposal to loosen the standard of independence for public board members.

Securities and Exchange Commission member Daniel Gallagher has sworn to take up the cause of municipal market reform at the SEC, accepting the baton from Elisse Walter, who recently left the commission.

The National Association of Bond Lawyers announced Thursday that it will present service awards to three recipients when the group meets in Chicago later this month.

Securities and Exchange Commission chairman Mary Jo White's annual salary is $165,300, far below the base compensation of any of the top-paid, full-time officials of 21 self-regulatory, industry, government, and other municipal securities-related groups, most of which the SEC either oversees or have members the commission regulates or protects.

Groups representing broker-dealers and issuers have sent a joint letter to the Securities and Exchange Commission complaining that the Municipal Securities Rulemaking board had sent SEC an amendment for approval without offering it for public comment, a charge the MSRB denied.

The National Federation of Municipal Analysts is urging the Securities and Exchange Commission to approve rule changes on standards for the Municipal Securities Rulemaking Board, saying they will increase investor representation on the board.

Several state and local groups have filed a comment letter with the Securities and Exchange Commission urging the SEC not to adopt a money market fund reform proposal which would of require a floating net asset value instead of the current $1 per share fixed value.

The Financial Industry Regulatory Authority announced Thursday that it has fined Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. LLC $1 million and ordered the company to pay $188,000 in restitution plus interest for violations of municipal and corporate bond rules.

The Municipal Securities Rulemaking board has released new guidance for issuers in deciding when to hire and how to compensate municipal advisors.

The Municipal Securities Rulemaking Board is proposing to consolidate into a revised Rule A-12 and form its existing requirements, along with some changes, for registration of broker-dealers and municipal advisors.

The Financial Industry Regulatory Authority fined four firms and two individuals a total of $270,000 for violations of municipal securities rules, FINRA announced this month.

Detroit's Chapter 9 filing may be "a game changer" that resolves controversial issues that have not been dealt with in prior cases, according to paper on muni defaults from the Bond Dealers of America.

Michael Piwowar has officially joined joined the Securities and Exchange Commission after taking the oath as its newest commissioner Thursday.

Officials overseeing bankrupt JeffCo get a lesson in "disclosure responsibilities" from disclosure expert John McNally, a partner at Hawkins, Delafield, & Wood.

Issuers, non-dealer municipal advisors, and financial reform advocates are upset that the Municipal Securities Rulemaking Board' "public members" continue to have close ties to dealer firms, complaining this undermines the Dodd-Frank Act intent that the board be majority public.