BDA Submits Comment Letter to MSRB on Bank Loan Disclosure Concept Proposal

BDA Submits Comment Letter to MSRB on Bank Loan Disclosure Concept Proposal 

The BDA submitted a comment letter to the MSRB that responds to the MSRB’s request for comment on a concept proposal to require the municipal advisor (MA) involved in a direct purchase or placement of a bank loan to disclose that direct purchase or bank loan to EMMA.

Comment Letter Summary:

• The BDA’s comment letter states that the BDA is a proponent of greater bank loan disclosure
• However, BDA does not believe it is appropriate, practical, or within the MSRB’s legal authority to require MAs to be the market participant that is required to make the disclosure
• BDA states that the optimal method for improving disclosure of bank loans would be for the SEC to amend Rule 15c2-12
• The letter also highlights the fact that non-dealer MAs continue to act as placement agents on securities transactions without registering as a broker-dealer
• BDA also notes that EMMA is not currently set up to facilitate these types of disclosures in an effective way