NAICU Washington Update

AGB Renews Efforts on SEC Proposed Rules

June 15, 2012

The Association of Governing Boards of Universities and Colleges has recently issued a new call to action for the higher education community regarding regulations first proposed by the Securities and Exchange Commission in January 2011. 

At that time, the SEC proposed rules that would require individuals who fit the broad definition of "municipal advisor" to register with the SEC, and to comply with new record-keeping requirements.  This is part of the ongoing implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in 2010.

With a very tight February 2011 deadline, AGB and others in the higher education community submitted comments to the SEC on the proposed rule.  NAICU endorsed both comment letters voicing strong opposition to the proposed requirement that college and university trustees, affiliated foundation members, employees, and board members might be defined as "municipal advisors" and subject to burdensome new rules.  AGB has continued to work with the SEC since then.

Now the SEC has indicated that final rules will likely be issued by the end of this year.  It's not known, however, if the final rules will reflect the higher education community's concerns with the "municipal advisor" definition.  Given that uncertainty, AGB is asking individual institutions to restate their concerns - both to the SEC directly, and to their members of Congress.  The AGB alert provides additional useful background and guidance. 

NAICU continues to support AGB's work on this issue, and encourages those who feel strongly about the proposed rule to weigh in with both the SEC and Congress.

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