Section 1027 of the financial regulatory reform legislation

In May I noted section 1027 of the financial regulatory reform legislation that went to conference.  The conference report (2,315 page PDF) mirrors the prior version of section 1027.

A summary of the conference committee notes:

Better Oversight of Municipal Securities Industry

  • Registers Municipal Advisors: Requires registration of municipal advisors and subjects them rules written by the MSRB and enforced by the SEC.
  • Puts Investors First on the MSRB Board: Ensures that at all times, the MSRB must have a majority of independent members, to ensure that the public interest is better protected in the regulation of municipal securities.
  • Fiduciary Duty: Imposes a fiduciary duty on advisors to ensure that they adhere to the highest standard of care when advising municipal issuers.

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