Regulatory Alerts2019-10-09 | 2019-21882Added
Proposed Exemptive Order Granting Conditional Exemption From Broker Registration for Registered Municipal Advisors
The Securities and Exchange Commission proposes to grant conditional exemptive relief to registered municipal advisors, permitting them to engage in certain limited activities related to the direct placement of municipal securities without registering as a broker under Section 15(a) of the Securities Exchange Act of 1934. This exemption allows municipal advisors acting on behalf of municipal issuer clients to solicit specified institutional investors, provided they adhere to strict conditions designed to ensure investor protection and prevent fraudulent practices. The Commission issued this proposal to address regulatory ambiguities regarding the broker registration requirements for municipal advisors facilitating direct placements, which have become an increasingly common alternative to public offerings.