US regulator clarifies municipal advisor registration rules

The US Securities and Exchange Commission’s Office of Municipal Securities has updated its Frequently Asked Questions webpage to provide greater clarity on the registration and recordkeeping requirements for municipal advisors. The revision aims to streamline the process for applicants and reinforce regulatory standards within the municipal securities market.

Dave A. Sanchez, Director of the Office of Municipal Securities, emphasised the importance of the update for maintaining market integrity. He noted that municipal securities fund essential public infrastructure, including schools, hospitals, and water systems, making transparency and accountability critical.

“The SEC is tasked with ensuring transparency and accountability in this market,” Sanchez said. He added that the changes are designed to help advisors, including those advising state and local governments on public-private partnerships, understand and follow regulations that keep the market fair and reliable.

A key component of the update is a new FAQ addressing the registration process. The guidance directs applicants, including sole proprietors, to existing staff informational bulletins and Municipal Securities Rulemaking Board compliance resources. These materials outline the specific steps required to initially register with both the SEC and the self-regulatory organisation for municipal securities dealers and advisors.

Sanchez highlighted that while the final rules for municipal advisor registration have been in place since 2013, the updated guidance ensures that current and prospective participants remain compliant. The Office of Municipal Securities stated that it is never too late for entities to come into compliance and complete the necessary registration procedures.