The SEC has adopted a temporary rule requiring municipal advisors ("muni advisors" or "MA's") to register with the SEC by 10/1, a deadline established by the newly-enacted Dodd-Frank Reform Act.  This interim final temporary rule establishes a means for muni advisors, as defined in Dodd-Frank, to satisfy temporarily the requirement that they register with the Commission by October 1, 2010.  The SEC implemented the registration provision on an interim basis in order for muni advisors to meet the new law's registration deadline, while noting that it expects to propose a permanent rule later this year.

    Who Are Municipal Advisors.   MA's provide advice to state and local governments and other borrowers involved in the issuance of municipal securities.  The advice typically relates to municipal derivatives, guaranteed investment contracts (GIC's), investment strategies or the issuance of municipal securities.  Muni advisors also solicit business from a state or local government for a 3rd party.

Subject to certain exemptions, a muni advisor, as defined under Dodd-Frank, includes financial advisors, GIC brokers, 3rd-party marketers, placement agents, solicitors, finders, and certain swap advisors that provide municipal advisory services.

    Registration Form MA-T.   Form MA-T requires municipal advisors to provide identifying and contact information, and select from a list of municipal advisory activities in which they engage.  MA's also are required to provide disciplinary history information similar to what the SEC obtains from registered B/D's and IA's.  Muni advisors will be required to amend the form whenever any identifying and contact information or disciplinary information has become inaccurate in any way, and whenever a municipal advisor wishes to withdraw from temporary registration.

Muni advisors can now access and complete Form MA-T on the SEC's website - and they're encouraged to begin the registration process ASAP because of the impending registration deadline and the requirement that applicants first obtain an ID and password.  The information on file will be available to the public.   

For further details, click onto"   [ SEC PR 10-162, 9/2 ] and/or  [ Interim Final Temp Rule Rel. 34-62824, 9/1 ]