Law and regulation

The Securities and Exchange Commission's examination focuses for 2015 include issues related to protecting retail investors and assessing the compliance of municipal advisor firms, the commission announced Tuesday.

The Securities and Exchange Commission is urging a federal court to accept the settlements it had reached with two former officials of the city of Allen Park, Mich., in November, after the court vacated them a day later and asked for more information.

Dealers want the Securities and Exchange Commission to direct the Municipal Securities Rulemaking Board to use a single qualifications exam for all muni professionals, while the Investment Company Institute wants separate municipal advisor exams tailored to the type of MA work being done.

Municipal Securities Rulemaking Board revenues totaled $32 million in fiscal year 2014, a 19% drop from the previous year, the board's annual report revealed.

The Financial Industry Regulatory Authority's exam priorities for 2015 include making sure that both municipal advisors are complying with registration and other requirements and broker-dealers are meeting minimum denomination restrictions on bonds.

Margaret “Peg” Henry, a lawyer who has worked for municipal securities regulators, congressional tax-writing committees, as well as bond lawyer and underwriting firms, has joined Stifel Nicolaus & Co. as a deputy general counsel.

The Municipal Securities Rulemaking board is accepting applications from individuals knowledgeable about the muni market who want to join the self-regulator's board of directors.

Market participants can expect increased municipal securities enforcement during 2015, a year that may bring resolution of the Securities and Exchange Commission's self-reporting initiative as well as greater emphasis on individual liability and secondary market disclosures.

A lawsuit challenging the Securities and Exchange Commission's investment adviser pay-to-play rule is moving forward in a D.C. federal appeals court, with implications for muni market pay-to-play restrictions hanging in the balance.

This year will bring more municipal advisor and secondary market transparency regulation, while a newly Republican-controlled Senate could lead Congress to scrutinize and possibly ease existing laws and rules.

Former Miami, Fla. budget director Michael Boudreaux is appealing to the U.S. Supreme Court after a federal appeals court decided not to reconsider its decision to disqualify his immunity from a Securities and Exchange Commission lawsuit.

Credit rating agencies have made strides in implementing mandatory reforms, the SEC said in recent reports that found the raters also need to improve in several areas, including the way they handle conflicts of interest.

State and local governments are the underdogs in influence peddling in Congress mostly because they spend little to nothing on lobbyists, in contrast to the millions of dollars spent by the big securities, banking and investment groups.

Muni bond issuers in Texas posted updated disclosures to correct previous omissions under the Securities and Exchange Commission's MCDC initiative.

Some non-dealer municipal advisors wrongly believe providing advice to an issuer in their capacity as a municipal advisors means they can also act as an intermediary between the issuer and investors.

Municipal bond groups are seeking federal appeals court guidance in a ratepayer appeal of part of Jefferson County, Ala.'s Chapter 9 bankruptcy plan, saying the district court decision allowing a challenge of the plan threatens to undermine market stability.

The Securities and Exchange Commission has named former Municipal Securities Rulemaking Board general counsel Gary Goldsholle as a deputy director in its Division of Trading and Markets.

The National Association of Municipal Advisors is urging the Securities and Exchange Commission to create exemptions from broker-dealer and investment adviser registration for MA firms engaged in activities understood to be normal municipal advisory services.

The Financial Industry Regulatory Authority has fined two firms a total of $7,500 for violations of Municipal Securities Rulemaking Board rules, FINRA said in its monthly disciplinary report Monday.

The Securities and Exchange Commission has received many comments on its rule 15c2-12, but is able to respond on only a limited basis because the request for comment is limited in scope, members of the commission's muni office told issuers Thursday.