{"id":5341,"date":"2012-09-21T00:00:00","date_gmt":"2012-09-21T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2012\/09\/municipal_advisor_bill_passes"},"modified":"2022-04-28T15:38:22","modified_gmt":"2022-04-28T20:38:22","slug":"municipal-advisor-bill-passes","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/municipal-advisor-bill-passes\/","title":{"rendered":"Municipal Advisor Bill Passes Vote by US House of Representatives"},"content":{"rendered":"<p>The House of Representatives has passed a bill that narrows the definition of a municipal advisor. HR 2827 also exempts certain market participants from being subject to certain rules and says that under Dodd-Frank Section 975 already regulated entities are not municipal advisors. This bill comes after the SEC proposed its own definition of municipal advisor two years ago that some considered too inclusive and\/or not in line with Congress\u2019s intent.<\/p>\n<p>In an effort to get wide bipartisan support, Rep. Robert Dold (R-Ill) and Rep. Gwen Moore (D-Wis.) modified the legislation and put back in the federal fiduciary standard for municipal advisers that ha been taken out. Democrats had expressed worry that getting rid of the uniform federal standard might reduce the strength of oversight on the industry. The bill also no longer has \u201cblanket exemptions\u201d to its definition of a municipal advisor, including the categorical language stating that broker-dealers, banks, and municipal securities dealers are not municipal advisors. However, per the House Financial Services Committee, which unanimously approved the bill earlier this month, if such entities were to only take part in certain activities, they would still not be included in the definition.<\/p>\n<p>The bill passed the committee with an amendment by Rep. Barney Frank (D-Mass.) that would take out the language that defines a municipal advisor as someone \u201cengaged \u2026 in writing\u201d to give a municipality advice. He believed the wording might have set up a possible loophole from municipal advisor regulation by letting parties not have a written contract. The municipal adviser definition, however, would still include those that \u201cengaged \u2026 for compensation.\u201d Also moving forward to the House with the bill was an amendment by Dold letting persons \u201cassociated\u201d with a municipal advisory firm to not have to individually register with the SEC. Dold said that the Commission had requested this.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/municipal-advisor-bill-passes\/\"  title=\"Continue Reading Municipal Advisor Bill Passes Vote by US House of Representatives\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The House of Representatives has passed a bill that narrows the definition of a municipal advisor. HR 2827 also exempts certain market participants from being subject to certain rules and says that under Dodd-Frank Section 975 already regulated entities are not municipal advisors. This bill comes after the SEC proposed its own definition of municipal [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3984],"tags":[],"class_list":["post-5341","post","type-post","status-publish","format-standard","hentry","category-municipal-advisors"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Municipal Advisor Bill Passes Vote by US House of Representatives &#8212; Investor Lawyers Blog &#8212; September 21, 2012<\/title>\n<meta name=\"description\" content=\"The House of Representatives has passed a bill that narrows the definition of a municipal advisor. HR 2827 also exempts certain market participants from &#8212; September 21, 2012\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/municipal-advisor-bill-passes\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Municipal Advisor Bill Passes Vote by US House of Representatives &#8212; Investor Lawyers Blog &#8212; September 21, 2012\" \/>\n<meta name=\"twitter:description\" content=\"The House of Representatives has passed a bill that narrows the definition of a municipal advisor. HR 2827 also exempts certain market participants from &#8212; September 21, 2012\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Municipal Advisor Bill Passes Vote by US House of Representatives &#8212; Investor Lawyers Blog &#8212; September 21, 2012","description":"The House of Representatives has passed a bill that narrows the definition of a municipal advisor. 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HR 2827 also exempts certain market participants from &#8212; September 21, 2012","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/municipal-advisor-bill-passes\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/municipal-advisor-bill-passes\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Municipal Advisor Bill Passes Vote by US House of Representatives","datePublished":"2012-09-21T05:00:00+00:00","dateModified":"2022-04-28T20:38:22+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/municipal-advisor-bill-passes\/"},"wordCount":557,"articleSection":["Municipal Advisors"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/municipal-advisor-bill-passes\/","url":"https:\/\/www.investorlawyers.com\/blog\/municipal-advisor-bill-passes\/","name":"Municipal Advisor Bill Passes Vote by US House of Representatives &#8212; Investor Lawyers Blog &#8212; September 21, 2012","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2012-09-21T05:00:00+00:00","dateModified":"2022-04-28T20:38:22+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"The House of Representatives has passed a bill that narrows the definition of a municipal advisor. 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