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SEC Requires Municipal Advisors to Register


In its first regulation implementing the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities and Exchange Commission announced today its adoption of a temporary rule requiring municipal advisors to register with the SEC by October 1, 2010.

“Municipal advisors” are persons who provide advice to a state or local government regarding municipal derivatives, guaranteed investment contracts, investment strategies or the issuance of municipal securities. The term is also defined to include persons who solicit business for these advisory services from a state or local government on behalf of a third party broker, dealer, municipal securities dealer, municipal advisor or investment adviser.

Municipal advisors must register with the SEC by completing and submitting new Form MA-T, which requires a municipal advisor to disclose certain basic identifying and contact information concerning its business, indicate the nature of its municipal advisory activities, and supply information about its disciplinary history and the disciplinary history of its associated municipal advisor professionals. Municipal advisors must amend the form whenever any identifying or contact information or disciplinary information has become inaccurate in any way.

Form MA-T and the Municipal Advisor Temporary Registration website can be accessed through the SEC’s website. Given the need to obtain an ID and password prior to submitting Form MA-T, it is recommended that municipal advisors begin the registration process immediately.