Securities Litigation

The SEC's new MA Rules become effective July 1, 2014, 17 CFR 240.15Ba1-1 through 1-8 and 15Bc4-1. Required by Dodd-Frank § 975, the Rules were adopted last year, but the SEC postponed their implementation from January to July 1. Rel. No. 34-71288 (stayed January 13 until July 1, 2014); Final Rule, Rel. No. 34-70462, here: http://www.sec.gov/rules/final/2013/34-70462.pdf

The Rules implement a registration regime and impose a fiduciary duty upon any person deemed a Municipal Advisor. The Rules are very specific about which circumstances and relationships impose that duty and what steps are required for various exemptions or safe-harbors. Those providing advice to Municipal Entities or Obligated Persons need to assess the effect of the Rules and update their supervision and compliance policies accordingly. The Securities & Financial Markets Association (SIFMA) recently released a set of Model Documents providing a helpful starting point for some compliance issues, here: http://www.sifma.org/services/standard-forms-and-documentation/municipal-securities-markets/#MAforms Additional resources include: SEC's Small Entity Compliance Guide SEC's FAQs MSRB Registration Guidance, Reg. Not. 2014-10 Thomas K. Potter, III (tpotter@burr.com) is a partner in the Securities Litigation Practice Group at Burr & Forman, LLP. Resident in the Nashville office, Tom is licensed in Tennessee, Texas and Louisiana. He has over 28 years' experience representing financial institutions in litigation, regulatory and compliance matters.