Washington

Non-dealer municipal advisors contend some muni bond underwriters are engaging in financial advisory activities with an issuer, despite a Municipal Securities Rulemaking Board rule prohibiting them from serving in both roles in the same transaction.

Regulatory efforts to promote muni market transparency have not reduced prices paid by retail investors for newly-issued muni bonds, according to study of muni bond trades by University of Notre Dame finance professor Paul Schultz.

The Securities and Exchange Commission's Office of Municipal Securities began reporting to SEC chairman Mary Schapiro as of Sept. 24, an attorney in the muni office said Thursday.

The Securities and Exchange Commission barred four former CDR Financial Products, Inc. employees from participating in the securities markets. CDR was formerly Rubin/Chambers Dunhill Insurance Services Inc.

Recent comments by the National Association of Independent Public Finance Advisors misstate the intent and value of the Dold Bill, which was approved on a bipartisan, unanimous basis by the Financial Services Committee and the U.S. House of Representatives.

The Municipal Securities Rulemaking Board has revised its proposal designed to ensure dealers follow the terms of issuers' retail-order periods (ROPs).

The Municipal Securities Rulemaking Board will consider a "best execution" rule during its current fiscal year, which began Monday, MSRB executive director Lynnette Kelly said at an industry meeting here today.

The Securities and Exchange Commission does not intend to take an entire year to finalize its definition of municipal advisor, SEC commissioner Elisse Walter said Monday.

David Brownstein, managing director and co-head of public finance at Citi, has been named recipient of the Securities Industry and Financial Market's Association’s 2012 Honor Roll Award.

Muni dealers should consider advising customers that issuers of Build America Bonds may have the option to call those bonds starting Jan. 2 if budget cuts due to sequestration take effect.