Responding to a perceived gap in the regulatory framework, as well as losses experienced by certain municipalities during the financial crisis, Congress adopted as part of the Dodd-Frank Wall Street and Consumer Protection Act amendments to the Securities Exchange Act of 1934 (the Exchange Act) that create a new registration and regulatory scheme for “municipal advisors.”
The law requires municipal advisors to register with the Securities and Exchange Commission (SEC) and comply with the rules of the Municipal Securities Rulemaking Board (the MSRB), including its registration requirements.1 It also imposes on municipal advisors a fiduciary duty when advising municipal entities.
