FINRA, MSRB urge firms to conduct due diligence in alternative financing transactions involving direct purchases and bank loans. The Financial Industry Regulatory Authority and the Municipal Securities Rulemaking Board issued guidance to firms regarding their obligations under certain MSRB and FINRA rules as well as applicable federal securities laws in connection with direct purchases, or the practice of privately placing municipal securities directly with a single purchaser, and the use of bank loans in the municipal securities market. (4/4/2016) FINRA Regulatory Notice 16-10.
SEC, FINRA release agenda for New York Compliance Outreach Program. The SEC and FINRA announced the agenda for its first joint Compliance Outreach Program from Broker-Dealers, which will take place on April 7, 2016, in New York. (3/28/2016) Compliance Outreach Program New York agenda.
MSRB seeks comments on direct purchase and bank loan information disclosure proposal. The MSRB is considering potential rulemaking that would require municipal advisors to disclose information about the bank loans and direct purchases of their municipal entity clients to the MSRB’s Electronic Municipal Market Access website. Comments on the MSRB’s concept proposal are due on or before May 27, 2016. (3/28/2016) MSRB press release.