I read with interest the recent op-ed on the SEC’s proposed Exemptive Order governing the role of Municipal Advisors on private placement transactions. (Susan Gaffney, “Setting the record straight on SEC Order,” March 11, 2020.) The piece is misleading and factually inaccurate in several respects. First, the proposed Exemptive Order clearly recognizes that the kinds…
Category: Private Placement Activity of Non-Dealer Municipal Advisors
BDA is concerned that non-dealer municipal advisors (MAs) may be violating securities law in certain instances by acting as unregistered dealers in private placements. We encourage the SEC and MSRB to remind MAs that acting as a placement agent is a broker-dealer activity with associated legal requirements.
Bond Buyer Article Covering BDA’s Pushback on the SEC to Reject the PFM and NAMA Requests to Avoid Broker-Dealer Regulation
Read the Bond Buyer article on this issue – HERE.
BDA Urges SEC to Reject the PFM and NAMA Requests to Avoid Broker-Dealer Regulation
After much consultation with the BDA Municipal Division and Legal and Compliance Committee leadership, along with BDA outside counsel-Nixon Peabody and Davis Polk, the BDA has submitted a letter to the SEC strongly opposing the recent requests for guidance regarding private placement activity by non-dealer municipal advisors. The BDA learned late last week that the SEC is…
Legislative Update: Senate Banking Committee Holds Hearing on PCAOB Audit Exemption Bill
June 26, 2018, the Senate Banking Committee considered The Small Business Audit Correction Act (S. 3004) at their hearing titled, “Legislative Proposals to Increase Access to Capital”. At the hearing, the co-sponsors of S. 3004, Senators Tom Cotton (R-AR) and Doug Jones (D-AL) highlighted that the bill would provide common sense regulatory relief to small businesses…
BDA Submits Comments to the House Ways and Means Tax Policy Subcommittee
The BDA has submitted written comments to the House House Ways and Means Tax Policy Subcommittee in support of fully reinstating tax-exempt advance refundings and expanding the use of private activity bonds (PABs). The comments can be viewed here. The comments were submitted in response to a recent hearing titled, “Tax Reform and Small Businesses: Growing Our Economy…
BDA Submits Written Comments in Support of Reinstating Municipal Advance Refundings and Expanding PABs
On May 7, 2018, the BDA submitted written comments to the Senate Finance Committee in support of fully reinstating tax-exempt advance refundings, including qualified 501c (3) bonds and expanding the use of private activity bonds (PABs). The comments can be viewed here. The comments were submitted in response to a hearing titled, “Early Impressions of the New Tax…
White House Introduces Infrastructure Package that Expands PABs
On February 12, 2018, the Trump Administration released the highly anticipated infrastructure proposal. The plan, included in the FY 2019 budget request,calls for $200 billion in direct federal funding to leverage $1.5 trillion in private investment. In what will cause heartburn on Capitol Hill, the Administrations budget calls for the elimination of popular transit programs…
Private-Activity Bonds Preserved in Final Conference Package
Today, House and Senate conferees finalized the conference report of the Tax Cuts and Jobs Act, fully preserving the tax exemption for both governmental municipal bonds and private-activity bonds, while repealing municipal advance refundings. The report is expected to be scored by the Joint Committee on Taxation over the weekend, setting up a vote of final…
MBFA Chair Contributes Article on PABs and Advance Refundings in the Bond Buyer
The City of Columbia and other local governments have long worked in good faith with our federal partner to develop policies and programs that invest in our communities and deliver results. As such, I deeply appreciate that both the House and Senate tax bills would maintain the century-old tax exemption for municipal bonds. State and…