Municipal Advisor Registration Rule: Discussion of Public Official Exemption

By Eric Robins and Rebecca Konst.
On September 18, 2013, the SEC unanimously approved final rules on the registration of municipal advisors. Under the final rule, a municipal advisor is required to register with the SEC if it provides advice on the issuance of municipal securities, provides advice on certain “investment strategies” related to the proceeds of municipal securities and related municipal escrow investments in refinancing, or provides advice on municipal derivatives. Also under the final rule, a person would be providing “advice” to a municipal entity or an “obligated person” based on “all of the relevant facts and circumstances,” including whether the advice: involves a “recommendation” to a municipal entity; is particularized to the specific needs of a municipal entity; and relates to municipal financial products or the issuance of municipal securities. The SEC also issued a rule to extend the temporary registration of municipal advisors, until the final rule becomes effective.

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