Release Date: January 10, 2014
Contact: Liz Pierce, 212.313.1173, [email protected]

SIFMA Statement on SEC Muni Advisor Guidance

Washington, D.C., January 10, 2014 – SIFMA today issued the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, in response to the Interpretive Guidance on Municipal Advisor Registration Rules released by the Securities and Exchange Commission (SEC):

“SIFMA welcomes the SEC’s interpretive guidance as it clarifies many of the matters addressed therein regarding the final Municipal Advisor Rule. We continue to encourage the SEC to delay the January 13 effective date of the Rule to give the industry sufficient time to incorporate this guidance into compliance programs and employee training as well as to give the industry additional time to identify accounts of municipal entities and obligated persons that contain proceeds of municipal securities.

“While we will review this Rule in greater detail with our members, upon first review, we believe the SEC has appropriately addressed some of the industry’s key concerns and questions regarding the text of the final Rule. Specifically, FAQ 3.4 clears up a misconception in the industry that an underwriter cannot speak to their clients without the client’s municipal advisor present. Additionally, we believe FAQ 4.1 resolves unintended registration issues for registered investment advisers and asset managers. Nevertheless, our Asset Management Group remains concerned about the potential effect of the Rule on certain managers of pooled investment vehicles. SIFMA also remains concerned that the SEC’s definition of what constitutes “advice” is not a bright line rule, but instead based on facts and circumstances.  We feel this test could restrict the ability of issuers to get the information they need from their bankers.”