Law and regulation

Market participants gathered at The Bond Buyer and Bond Dealers of America’s National Municipal Bond Summit expressed concerns with the broad nature of the SEC’s proposal to add two material events to Rule 15c2-12 that would also emphasize the need to make materiality determinations.

The SEC wants a Puerto Rico federal court to agree that Jose Ramirez, a former UBS Puerto Rico employee, engaged in a scheme to defraud investors in closed-end funds with large investments in Puerto Rico bonds.

Five firms have agreed to pay a total of nearly $920,000 to settle separate rule violations related to municipal securities.

Lawyers gathered at NABL’s Tax and Securities Law Institute on Friday said a carve out in the MSRB’s recent clarification on requiring CUSIPs for private placements would be beneficial to the market.

Lawyers at NABL’s TSLI conference on Thursday said that while the SEC’s proposed amendments to its list of material events are well-meaning, they would be burdensome for issuers dealing with the numerous new disclosure obligations.

The Senate Banking Committee’s scheduled hearing on Jay Clayton’s nomination is expected to include some questions from Democrats on Clayton’s ties to Wall Street and ability to protect investors.

A guilty plea from Aaron Troodler, the former executive director of the Ramapo Local Development Corp., for criminal securities fraud means he could face a maximum of 25 years in prison.

The Municipal Securities Rulemaking Board has released criteria that will generally require the top five firms submitting to certain of the self-regulator’s systems to participate in Securities and Exchange Commission-mandated business continuity and disaster recovery plan testing.

Marrien Neilson, the former BOK Financial employee the SEC said was responsible for concealing some of Christopher Brogdon's securities fraud, agreed to a first of a kind ban on her acting as an indenture trustee or dissemination agent for municipal bonds as well as a $55,000 payment to settle the charges.

Dealers are criticizing a proposed standalone minimum denomination rule from the Municipal Securities Rulemaking Board, saying it would hamper liquidity and hurt investors by limiting the liquidity of below-minimum denomination positions in municipal securities.