Those looking for guidance on how to proceed regarding the new rule requiring registration of municipal advisors will have a bit longer to wait. Thus far, the only official action taken is the extension of the rule mandating temporary registrations. Instead of expiring on Dec. 31, 2011, now the rule sunsets on Sept. 30 of this year.
At an SEC compliance conference on Jan. 31, Norm Champ, associate director of the SEC’s Office of Compliance Inspections and Examinations (OCIE), which under Dodd-Frank will take on exams of municipal advisors, spoke briefly about the category of municipal advisors. He said, “We continue to meet with MSRB [the Municipal Securities Rulemaking Board] to work on registration of municipal advisors. Around 10% of those who registered temporarily as municipal advisors are affiliated with an advisory firm.”
Also at the conference, Robert Plaze, associate director of the SEC Investment Management division, added that one of the issues is “the scope of the exemptions” under this municipal rule.