The SEC proposed a rule creating a new process by which municipal advisors must register with the SEC - it  would supplant a temporary rule that's been in effect since 10/1/10.  For further details, click onto:  [SEC Rel. 10-253, 12/20]  [SEC Proposed Rule Rel. 34-63576]

    What's a Municipal Advisor?   Muni advisors ("MA's") advise state and local governments and other borrowers in the issuance of municipal securities or with respect to the investment of governmental monies.  MA's also solicit business from a state or local government for a 3rd party.  Subject to certain exemptions, Dodd-Frank defines "municipal advisor" to include:  financial advisors, guaranteed investment contract brokers, third-party marketers, placement agents, solicitors, finders, and certain swap advisors that provide municipal advisory services.

As proposed, MA's would have to submit more detailed information than is currently required, and certify that they've met or will meet the qualifications and regulatory obligations required of them.  In particular:

• A municipal advisory firm must submit Form MA to register.
• An individual MA must submit a Form MA-I to register.
• A municipal advisory firm or individual MA must submit a Form MA-W to withdraw from registration.
• A non-resident municipal advisory firm (and any non-resident general partner or managing agent of a municipal advisory firm) must submit a Form MA-NR in order to appoint an agent for service of process.

Like the temporary form required of municipal advisors (Form MA-T), the registration forms envisioned by the proposed rule would require municipal advisors to provide identifying and contact information, and to disclose - by selecting from a list - the municipal advisory activities in which they engage.

MA's also would be required to provide disciplinary history information similar to the information that the SEC obtains from registered BD's and IA's.  Individual MA's would be required to amend the form whenever any of the required information has become inaccurate in any way;  municipal advisory firms would be required to amend the form annually, and whenever identifying and contact information or disciplinary information has become inaccurate.

MA's can continue to access and complete temporary registration form, Form MA-T, on the SEC's website.  Information filed by MA's on Form MA-T is made publicly available on the SEC's website.  In addition to registering with the SEC, MA's also must register with the Municipal Securities Rulemaking Board (MSRB).