(47) It was an act "[t]o promote the financial stability of the United States by improving accountability and transparency in the financial system, to end 'too big to fail,' to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial service practices, and for other purposes." (48) Section 975 of the Dodd-Frank Act made several changes to the oversight of the municipal securities
Municipal advisors and municipal securities
dealers, she continued, "will be seeing a significant increase in MSRB outreach events, educational opportunities and the release of various forms of compliance aids, all with the goal of facilitating compliance with MSRB rules."
(50) While this possibility is not likely contemplated by municipal securities
investors, recent events demonstrate that it should be.
The Municipal Securities
Representative Qualification Exam is written by the MSRB but administered by FINRA.
It makes it "unlawful for a municipal advisor to provide advice to or on behalf of a municipal entity or obligated person with respect to municipal financial products or the issuance of municipal securities
, or to undertake a solicitation of a municipal entity or obligated person, unless the municipal advisor is registered in accordance with [the law]."
Congress created the MSRB in 1975 to oversee the municipal market to promote market integrity and transparency by regulating those who underwrite, trade and sell municipal securities
. The Wall Street Reform Act expanded the role of the MSRB to include "the protection of state and local government issuers, public pension plans and others whose credit stands behind municipal bonds, in addition to protecting investors and the public interest."
Typically, when investors purchase municipal securities
, the municipalities temporarily invest the proceeds of the sales in municipal reinvestment products until the money is used for the intended purposes.
Persons acting as intermediaries between buyers and sellers of the warrants may need to register as brokers, dealers or municipal securities
dealers, or as alternative trading systems or national securities exchanges.
Not to put anyone off, but the field of municipal securities
Content includes coverage of such topics as the effective use of fight letters in proxy contests, SEC losses in recent insider trading cases, disclosure obligations of issues of municipal securities
, ethical duties for lawyers under the Sarbanes-Oxley Act, and the dorporate opportunity doctrine as it relates to IPOs.
In late February, the Federal Reserve Board approved a proposal that Reserve Banks no longer provide services to financial institutions for collecting and processing definitive municipal securities
, which are registered or bearer bonds issued by state and local governments with interest coupons in physical form.