SEC Adopts Temporary Muni Adviser Registration

September 3, 2010 ( – The Securities and Exchange Commission (SEC) has adopted a temporary rule requiring municipal advisers to register with the SEC by October 1.

An SEC news release said the deadline was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

According to the announcement, the agency implemented the registration provision on an interim basis so municipal advisers could meet the registration timetable. The SEC expects to propose a permanent rule later this year.

“We have acted expeditiously to create a temporary registration system to gather key data and provide transparency about municipal advisers,” said SEC Chairman Mary L. Schapiro, in the news release. “As a result, regulators, investors, and state and local governments will have a much better understanding of those who provide services in the municipal market.”

The announcement said municipal advisers provide advice to state and local governments and other borrowers involved in issuing municipal securities, which typically relates to municipal derivatives, guaranteed investment contracts, investment strategies or the issuance of municipal securities. Municipal advisers also solicit business from a state or local government for a third party.

Subject to certain exemptions, the definition of municipal adviser under the Dodd-Frank Act includes financial advisers, guaranteed investment contract brokers, third-party marketers, placement agents, solicitors, finders, and certain swap advisers that provide municipal advisory services.

Form MA-T requires municipal advisers to provide identifying and contact information, and select from a list of municipal advisory activities in which they engage. Municipal advisers also are required to provide disciplinary history information similar to what the SEC obtains from registered broker-dealers and investment advisers.

More information about the registration is available at .

Information filed by municipal advisers will be made publicly available on the SEC’s Web site by the registration deadline.