NAICU Washington Update

Final SEC Municipal Advisor Rule Exempts College and University Board Members

September 20, 2013

The Securities and Exchange Commission (SEC) recently announced final rules establishing a permanent process for registering municipal advisors, as required by the Dodd-Frank Act. The SEC announcement exempts college and university board members acting in their official capacity from having to register as municipal advisors. This is good news for the higher education community that has been advocating for this exemption since the proposed rules were announced in January, 2011.

The Dodd-Frank Act was passed in July, 2010, as part of the Wall Street Reform and Consumer Protection Act. Dodd¬-Frank was considered the most sweeping change to financial regulation in the U.S. since the Great Depression. The SEC proposed rules that followed in January, 2011, would have established a broad definition of municipal advisors that would have to register with the SEC and keep up with burdensome record-keeping requirements. This would have impacted college and university board members. [See February 11, 2011 Washington Update]

The SEC announced the exemption of college and university board members from the municipal advisor requirements on September 18, 2013. NAICU had been working with the Association of Governing Boards of Colleges and Universities (AGB) and others in the higher education community on this issue since the proposed rules were announced. AGBs announcement also contains additional information from the SEC.

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