Securities Litigation

The SEC's Office of Compliance Inspections and Examinations ("OCIE") announced August 19 a two-year, three-phase examination initiative targeting newly-registered municipal advisors. SEC Press Rel. 2014-170 (Aug. 19, 2014). The MA Examination Initiative hopes to engage a significant portion of newly-registered MA's. In the first phase, Engagement, OCIE will engage in nationwide outreach to inform MA's of their obligations under Dodd-Frank, the SEC's new MA Rule and related implementing Rules by MSRB and others. The second phase, Examination, will review identified risk areas of selected MA's including compliance with at least the following requirements: (1) Registration; (2) Fiduciary Duty; (3) Disclosure; (4) Fair Dealing; (5) Supervision; (6) Book and Records; and (7) Training and Qualifications. The third phase, Informing Policy, is a feed-back loop using the information gathering to suggest further refinement of the new regulatory regime for municipal advisors. OCIE's August 19 letter is here. Thomas K. Potter, III (tpotter@burr.com) is a partner in the Securities Litigation Practice Group at Burr & Forman, LLP. Managing Partner of 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. © 2014 by Thomas K. Potter, III (all rights reserved).