The Securities and Exchange Commission last Thursday, February 27, approved a new consolidated set of registration forms and requirements for municipal market participants, MSRB Rule A-12. SEC Rel. 34-71616; MSRB Reg. Notice 2014-05. Municipal registrants will have until August 10, 2014 to update their registration information with the MSRB, using the new forms. For more information on securities litigation topics, please contact one of the Burr & Forman team members for assistance. We are happy to answer any questions or concerns you may have.

Posted in: MSRB, SEC
Tags: MSRB, SEC

On February 25, the Municipal Securities Rulemaking Board ("MSRB") proposed new Rule G-44 imposing a supervision and compliance requirements for Municipal Advisors ("MA's"). The Dodd-Frank Act imposed a new regulatory regime for MA's. New Rule G-44 imposes requirements familiar from broker-dealer regulation, including:

  • A supervisory system reasonably designed to assure compliance with applicable laws and regulations;
  • Written supervisory procedures ("WSP's") tailored to a registrant's business;
  • Registered principals in supervisory roles; and,
  • A Chief ...
Posted in: Dodd-Frank, FINRA, MSRB
As an investor, you should perform due diligence prior to having an out-of-state attorney represent you in a securities dispute. In an era where social media provides multiple channels for the advertising of an attorney's skill sets, an investor should take heed before making the decision to engage out-of-state counsel to represent them. For example, out-of-state attorneys must either hire local counsel or satisfy several requirements before appearing at the arbitration, or even at any mediation, of securities related matters in the following states: California, Florida ...
Posted in: FINRA
Tags: finra

Facing an examination or investigation by the Financial Industry and Regulatory Authority (FINRA) can be a stressful and intimidating experience for even the most seasoned financial advisor. Understanding the oversight role FINRA plays and the process can help you to properly prepare and reduce the risk of adverse consequences. If you find yourself the subject of a FINRA inquiry, here are some tips to help you navigate the process:

  1. Determine The Subject Of The Inquiry - If you find yourself involved in an inquiry, FINRA usually will send you a letter requesting information and ...
Posted in: FINRA, OTR, SEC
The Municipal Securities Rulemaking Board ("MSRB") held a webinar Feb. 6, 2014 discussing its proposed Rule G-42 to impose a broad range of duties, proscriptions and documentation requirements upon non-solicitor Municipal Advisors ("MA's"). Some more controversial points among the proposed Rule include: (a) a broad prohibition against principal transactions, not just by MA's but also by all their affiliates; (b) consideration of whether to mandate MA insurance and require specific coverages; and (c) potential prohibition of contractual limitations on the scope of an ...
Reacting in part to recent data-breaches and cyber-attacks on larger retailers, the Financial Industry Regulatory Authority ("FINRA") is conducting a targeted examination of some 20 broker-dealer member firms' compliance and risk-management approaches to cyber-security, aimed at increasing regulators' understanding of the cyber-security risk environment and various approaches and methods used throughout the industry. Wall Street conducted its second comprehensive cyber-security drill, Quantum Dawn 2, just this past July. The after-action study and related ...
Posted in: FINRA, SIFMA

On January 9, the SEC's Office of Compliance Inspections and Examinations ("OCIE") issued its annual "hot-topics" list of examination priorities for 2014. National Exam Program Priorities across OCIE's entire program include: 1. Fraud Detection & Prevention 2. Corporate Governance, Conflicts of Interest & Enterprise Risk Management 3. Technology 4. Dual Registrants (BD & RIA) 5. New Laws & Regulation

  • Rule 506(c) Accredited Investors
  • Crowd-funding
  • Municipal Advisors
  • New Registrants under Dodd-Frank
6. Retirement Vehicles & Rollovers (IRA & 401k) suitability ...
Posted in: Dodd-Frank, OCIE, SEC
On Thursday, January 9, the MSRB re-proposed new Rule G-42 promulgating standards of conduct for Municipal Advisors ("MA's") subject to the almost-newly-effective SEC MA Rule, 17 CFR § §240.15Ba1-1 to 15Ba1-8 (now delayed until July 1, 2014). MSRB Notice 2014-01 covers the following principal objectives: I. It establishes an MA's fiduciary duty to Municipal-Entity ("ME") clients, but merely a duty of care to "Obligated Person" ("OP") clients (consistent with Dodd-Frank). II. It moves the "engagement letter" regulatory trend forward by imposing a detailed ...
Posted in: MSRB, SIFMA
Tags: MSRB, SIFMA

The SEC's new Municipal-Advisor Rules, 17 CFR § § 240.15Ba1-1 to 15Ba1-8 were to become effective Monday, January 13, 2014 but that morning were delayed until July 1. SEC Rel. 34-71288. Adopted last September, SEC Rel. 34-70462, the Rules will implement Dodd-Frank § 975 and require registration (firm-only, not individuals) and impose fiduciary duty upon MA's (and their control affiliates), subjecting MA's to SEC, FINRA and MSRB rules regarding:

  • Supervision
  • Conflicts
  • Gifts & Entertainment
  • Political Contributions
  • Books & Records
  • Business Communications
  • Compensation and ...
Posted in: Dodd-Frank, SEC
On January 2, 2014, the Financial Industry Regulatory Authority ("FINRA") published its annual regulatory and examination priorities letter for 2014. In the publication, FINRA addressed a number of matters, including suitability of recommendations, addressing issues involving the solicitation, advertising, due diligence and suitability of private placements, and focusing its attention on "recidivist brokers." FINRA has always addressed the issue of suitability. Specifically, FINRA Rule 2111 explains the requirements, which are further explained in Regulatory ...
Posted in: FINRA, SEC
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