The July 2015 ruling by the D.C. Circuit Court in Koch v. SEC will apparently not be challenged by the SEC. The Court ruled in that decision that the Dodd-Frank Act did not provide authority for the SEC to apply retroactively provisions barring a person from associating with municipal advisors or statistical rating organizations for bars that were issued by the SEC prior to the enactment date of the Dodd-Frank legislation. The court made its ruling in response to the SEC imposing a bar on an adviser for conduct that occurred prior to July 22, 2010, the effective date of the Dodd-Frank legislation.
Based upon the Court’s ruling and the SEC’s decision not to appeal the ruling means that any person that is the subject of a bar by the SEC for conduct that occurred prior to the effective date of Dodd-Frank, may request the SEC vacate the bar order. This process only applies to bars associated with a municipal adviser or national recognized statistical rating organization (NRSRO). All other bars imposed by the SEC were not the subject of the Court’s ruling and remain in effect.