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.
BDA Sends Letter to SEC & MSRB: Urges Closer Look at Non-Dealer Placement Activities
The BDA sent two identical letters to the SEC and MSRB, focusing on the rapid growth of “direct placement, direct loan or private placement” transactions to banks and other investors. In its letter, the BDA states, “Now that the SEC is enforcing its own, and the MSRB’s regulations in regards to non-broker dealer municipal advisors we…
MSRB Warns Financial Advisors on Private Placements and Bank Loans.
On August 3, 2011, the MSRB issued a notice reminding financial advisors that they may be considered brokers, and have to comply with the MSRB’s rules concerning brokers, in certain cases of private placements and also bank loans. All financial advisors, whether or not they are currently registered with the SEC as brokers, dealers or municipal securities dealers…