These two sets of related comments have been submitted to the SEC and the CFTC. In the SEC comments BDA points out the problems associated with the SEC’s definition of municipal advisor, including that it does not clearly delineate the activities that broker-dealers can engage in without being classified as municipal advisors. The BDA also criticized…
Author: Bond Dealers of America
BDA Releases Statement on the Health of the Municipal Bond Market
The statement refutes the allegations that the municipal market is under severe stress. Click here to see the statement in The Wall Street Journal.
Administration releases budget – proposes BABs, but cuts state and local aid
Some highlights are: BABs: The budget proposes to reinstate and, like last year, expand the BABs program to “certain additional program uses” at a rate that is essentially revenue neutral. The budget itself does not specify the rate, but separate information from the Treasury Department sets the rate at 28 percent. Bank Qualified: The Administration did not propose…
MSRB Sends Latest G-23 Proposal to SEC
BDA commented in September on the MRSB’s original proposal. BDA sought to have the rule apply only to negotiated sales and noted the effect on small and infrequent issuers. BDA also requested that the rule apply only on an issue by issue basis and that there be a transition period. The last two suggestions were…
Two Commissioners Criticize SEC Fiduciary Study
Commissioners Casey and Paredes have issued a statement that criticizes the SEC Staff study on a uniform fiduciary duty for Investment Advisers and broker-dealers for not providing an “adequate articulation or substantiation of the problems that would purportedly be addressed via that regulation. The Study also does not adequately recognize the risk that its recommendations…
SEC Releases Study on Fiduciary Duty
The Study, required under the Dodd-Frank Act before the SEC can issue regulations, does not provide recommendations of specific actions for the SEC to take, other than to impose a broad uniform standard of care for Investment Advisers and Broker-Dealers. The Study also does not recommend prohibiting specific possible conflicts of interest, seeming to rely…
MSRB revises proposal on pay to play for muni advisors.
On January 14, 2011, the Municipal Securities Rulemaking Board published MSRB Notice 2011-04 requesting comment on a pay to play rule for municipal advisors. The MSRB has revised a proposed change to Rule G-37 contained in the notice to retain original language in Rule G-37(g)(iv)(B). Comments are due by February 25, 2011. The MSRB will…
Analysis – Bank Deductibility of bonds issued in 2009 and 2010.
Please click here for the complete report prepared for the BDA by Nixon Peabody.
Guidelines for muni underwriters post SEC suit against New Jersey
Please click here for the complete document.
FSOC Releases Study on Volker Rule
A “banking entity” includes any depository institution that has federal deposit insurance or access to the discount window, any company that controls such a depository institution and any bank holding company as well as their subsidiaries and affiliates. Some broker-dealers will, therefore, be subject to the Volker Rule. The study includes a discussion of how to distinguish…