Law and regulation

The Government Finance Officers Association is recommending state and local governments refrain from issuing bonds to finance the unfunded liabilities of health care and other non-pension post-employment benefit programs.

School and community college districts violate California law if they purposely incentivize municipal finance professionals to advocate for passage of a bond measure, said a formal opinion from Attorney General Kamala Harris.

The House is scheduled to hold a voice vote on Monday on a bill that would treat investment grade and actively traded municipal securities as high quality liquid assets under a rule banking regulators adopted in 2014.

Two Republican state committees that challenged the constitutionality of a Securities and Exchange Commission political contributions rule are insisting the SEC reject a Municipal Securities Rulemaking Board proposal to extend pay-to-play prohibitions to municipal advisors.

Dealer and advisor groups want revisions to a Municipal Securities Rulemaking Board proposal to extend pay-to-play prohibitions to non-dealer municipal advisors.

The Municipal Securities Rulemaking Board plans to discuss bank loans and dealer disclosure of markups to retail customers during its board meeting here next week.

The Municipal Securities Rulemaking Board announced on Tuesday which registered brokers, dealers, and municipal advisors will be required to participate in testing business continuity and disaster recovery plans.

The Municipal Securities Rulemaking Board is asking the Securities and Exchange Commission to approve its slightly revised proposal to lengthen board members’ terms to four years from three.

J. P. Turner & Co. and Wedbush Securities, Inc. were hit with a total of $305,000 in fines by the Financial Industry Regulatory Authority for violating municipal bond rules in connection with excessive markups, disclosure failures, and/or falsifying documents.

The “Great Financial Crisis” continues to haunt the world’s economy because government failed to repair a damaged system and prosecute fraud, says University of Texas economist James K. Galbraith, who speaks next month at a Bond Buyer event in Austin.

The Securities and Exchange Commission has charged State Street Bank and Trust Co., the former head of its public funds group, and a lawyer-lobbyist with securities fraud for making illicit payments and campaign contributions to obtain Ohio pension fund business worth millions.

A Securities and Exchange Commission proposal designed to bolster liquidity risk management among open-end funds would likely reduce the funds' appetite for municipal securities and deter infrastructure projects, the Government Finance Officers Association warned.

The Municipal Securities Rulemaking Board on Tuesday released a regulatory notice detailing new core conduct requirements for municipal advisors.

Oregon's Municipal Debt Advisory Commission Task Force will gather information about new categories of debt incurred by local governments, including bank loans and lines of credit.

The Municipal Securities Rulemaking Board had $69.52 million of net assets at the end of September, nearly triple the $25.94 million it had five years ago, according to MSRB financial documents.

Public pension fund advisors are among a handful of new examination priorities for the Securities and Exchange Commission in 2016.

The Municipal Securities Rulemaking Board is seeking comment on a proposal it says would lessen the effect of interdealer transaction failures on the municipal market while providing needed changes to an outdated rule.

A group of lawyers is urging tax regulators to make some revisions and clarifications to proposed issue price rules to avoid confusion and make the rules more workable.

Most states will be able to issue more private-activity bonds in 2016.

The Municipal Securities Rulemaking Board is seeking applicants to replace seven board members whose terms will end Sept. 30 and has emphasized its interest in applicants to represent investors.