Two of the criticisms of the earlier proposal were that the brokers’ broker could not notify a bidder about an erroneous bid without the consent of the seller and that the brokers’ broker would have to determine whether a bid was fair and reasonable. The earlier proposal would not have provided clear, objective criteria about…
Author: Bond Dealers of America
BDA submits comments on MSRB Proposed New Rule A-11-Interim.
The proposed new rule would consist of an annual assessment of $300 for each “assessable professional” and would cover broker-dealers that employ municipal advisors. The BDA’s comments are available here.
MSRB files proposed Rule G-36 with the SEC, governing the fiduciary duty owed by municipal advisors.
Today, the MSRB filed proposed Rule G-36 with the SEC, governing the fiduciary duty owed by municipal advisors to state and local government clients, and other municipal entity clients. Under the Rule and its accompanying guidance, municipal advisors would owe a duty of loyalty and a duty of care that would require them to act…
FINRA Issues Guidance on Social Media
The newly issued guidance covers a series of topics in Q&A format: Recordkeeping, Supervision, Data Feeds, Links to 3rd party sites, 3rd party posts, Answering questions via Social Media and Accessing Social Media from Personal Devices. This guidance expands on the principles in Notice 10-06. Notice 11-39 is available here and Notice 10-06 is available…
MSRB Files Muni Advisor Pay to Play Rule
The proposal would also make changes to Rule G-37, to make clear that municipal advisors who work at broker-dealers would be covered with other municipal advisors under new Rule G-42 and various conforming changes to other MSRB rules. The new rule would be effective 6 months after either (1) the SEC first approves rules defining…
MSRB Recommends Additional Disclosure
Among the steps the MSRB recommends are steps that would provide guidance to underwriters to help them determine when they can reasonably believe that an issuer will live up to its continuing disclosure agreement. Under current rules, an issuer must reasonably believe that an issuer will meet its continuing disclosure obligations before it can underwrite…
MSRB Warns Financial Advisors on Private Placements and Bank Loans.
On August 3, 2011, the MSRB issued a notice reminding financial advisors that they may be considered brokers, and have to comply with the MSRB’s rules concerning brokers, in certain cases of private placements and also bank loans. All financial advisors, whether or not they are currently registered with the SEC as brokers, dealers or municipal securities dealers…
House Financial Services Chairman, Spencer Bachus announces he will introduce a bill to comprehensively restructure the SEC.
On Tuesday, August 2, House Financial Services Committee Chairman, Spencer Bachus announced that he will be putting together a bill that would, among other things: · Consolidate several offices within the SEC, and require the agency to submit to Congress by the end of January its agenda for each year. · Require the SEC to establish a…
Debt Ceiling Update
The BDA has refrained from reporting on the debt limit back and forth. Now, however, we are very close to the possibility that the Congress will not pass an increase in the debt limit before the Treasury runs out of cash to pay, not only interest and principal on the debt, but also Social Security…
SEC calls for improved protections for Structured Products Sold to Retail Investors
The report states that larger broker-dealers should focus on issues such as: having adequate procedures and controls to prevent and detect possible abuses in the secondary market for structured securities products; disclosing material facts regarding the structured securities products being offered; requiring registered representatives and their supervisors to complete specialized training in structured securities products…