A Compilation of Enforcement and Non-Enforcement Actions - October 2010

Non-Enforcement Matters

Regulation Requirements for Municipal Advisers Not Clear to All

Some municipal advisers and their counsel believe that the SEC's temporary rule requiring municipal advisers to register (Rule 15Ba2-6T under the Securities Exchange Act of 1934) lacks clarity and needs to be amended. The temporary rule is effective until December 30, 2011 or until the SEC completes a final rule. By October 1, 2010, municipal advisers are required to register as investment advisers with the SEC. The temporary rule was promulgated by the SEC in response to Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act requiring registration of such advisers. In addition, the statute states that such advisers have a fiduciary duty to the municipalities they advise.