Law and regulation

Rep. Nydia Velazquez, D- N.Y., introduced a bill Wednesday that would substantially increase hedge fund reporting requirements in response to ongoing concerns about hedge funds' role in Puerto Rico's financial crisis.

The House Financial Services Committee approved a bipartisan bill by voice vote on Tuesday that would treat investment grade and actively traded municipal securities as high quality liquid assets under a bank liquidity rule adopted by banking regulators in September of last year.

The Municipal Securities Rulemaking Board filed a rule with the Securities and Exchange Commission on Tuesday that would require certain brokers, dealers and municipal advisors registered with the MSRB to participate in its business continuity and disaster recovery testing.

The Administration has concluded that, as part of a comprehensive approach to Puerto Rico's crisis, a tested federal bankruptcy regime is necessary.

Financial Industry Regulatory Authority chairman and chief executive officer Richard Ketchum announced Friday he will retire in the second half of 2016.

The Municipal Securities Rulemaking Board answered dealer questions and provided guidance on its proposal to require dealers acting to disclose markups and markdowns.

Justin Underwood will join Bond Dealers of America on Nov. 16 as federal policy advisor.

The Government Finance Officers Association's executive board recently approved two updated disclosure best practice documents designed to help issuers meet their bond-related disclosure requirements while considering the possibilities of website-based and voluntary disclosures.

The Municipal Securities Rulemaking Board may be able to publish guidance on its best execution rule as early as next month, MSRB officials said Monday.

Rating agencies are continuing to treat municipal issuers unfairly even though federal law required that practice to stop, former California Treasurer Bill Lockyer said.

President Barack Obama on Wednesday nominated Hester Peirce to finish Daniel Gallagher’s term until June 5, 2016, and Lisa Fairfax to replace Luis Aguilar for a five-year term to the Securities and Exchange Commission.

A proposed House bill to treat investment grade and actively traded municipal securities as high quality liquid assets received support from members of a House Financial Services Committee panel as well as banking experts during a hearing on Wednesday.

The Treasury Department's Antonio Weiss and Puerto Rico Gov. Alejandro Garcia Padilla will testify on Thursday before a Senate Committee on the territory's economy, debt and options that should be considered by Congress.

The Municipal Securities Rulemaking Board is extending the date for comments on its recently proposed markup disclosure rule while an industry group wants the board to delay the implementation deadline for its best execution rule.

The Municipal Securities Rulemaking Board’s proposed changes to extend its gift rule to municipal advisors “remain unclear in crucial areas” and “do not go far enough to prevent abuses” by both MAs and broker-dealers, the National Association of Municipal Advisors said.

Landolt Securities, Inc. has been ordered by the Financial Industry Regulatory Authority to pay $20,000 for violating municipal trade reporting, books and records, and supervisory rules.

Christopher Brogdon, who was at the center of more than a dozen problematic healthcare municipal bond deals for which at least $2 million was unaccounted for, will resign from the board of healthcare firm AdCare.

The Municipal Securities Rulemaking Board plans at its quarterly meeting next week to discuss its proposal to require dealers to disclose on retail customer confirmations the markups and markdowns on principal transactions.

Securities and Exchange Commission officials updated National Association of Municipal Advisors members here on the status of the commission’s municipal advisor examinations and fielded individual questions about continuing compliance with the program.

The Financial Industry Regulatory Authority ordered San Juan-based Santander Securities on Tuesday to pay $6.4 million for supervisory failures related to Puerto Rican municipal bonds.