Washington

The Securities Industry and Financial Markets Association is very concerned about the imminent effective date of the new municipal advisor rule.

The Financial Industry Regulatory Authority has identified the suitability of the bonds of distressed municipalities for investors, as well as municipal advisor activity, as areas it will focus on in 2014.

Jefferson County, Ala., is out of municipal bankruptcy but appeals of the bankruptcy plan and criminal prosecutions will keep the county in the spotlight.

A federal judge has ruled that the Securities and Exchange Commission's fraud case against Miami, Fla. and its former budget director can continue in civil court, denying both defendants' motions to dismiss.

Former Bear Stearns banker Chol-Su "Chris" Pak was sentenced to three years of probation and a $20,000 fine for his part in a massive El Paso County corruption scandal.

The Securities and Exchange Commission's enforcement division will be very active in the muni space in 2014, experts said, with emphasis on actions against municipal officials and underwriters.

Municipal advisor regulations are likely to be the focus of intense debate in 2014, as the Municipal Securities Rulemaking Board labors to release rules and broker-dealer groups continue to push for interpretations favorable to underwriters.

FirstSouthwest is protesting against "restrictive" conditions included in a request for quotations issued by the Greater Texoma Utility Authority in Texas, which said it will only consider proposals from a financial advisor that is independent from a broker-dealer.

A group of non-dealer advisors on Wednesday released a guide for issuers and municipal advisors, saying it is designed to clear up misconceptions about the Securities and Exchange Commission's municipal advisor rules.

The Securities and Exchange Commission said Tuesday that it has "increased its attention to securities violations by municipalities and other participants in the market for securities of cities and other governmental issuers," but did not give any statistics.