When the SEC adopted final rules regarding the ban on third-party solicitation under the “pay-to-play” rules, the compliance date for such rules was nine months after the compliance date of a final rule adopted by the SEC by which municipal advisers must register under the Exchange Act. On September 20, 2013, the SEC adopted such a Final Rule to establish a permanent registration regime for municipal advisors. This Final Rule was required to implement the provisions of the Dodd-Frank Act, which amended Section 15B of the Exchange Act. The Dodd-Frank Act generally prohibits municipal advisors from soliciting or providing certain advice to municipal entities without first registering with the SEC. The SEC had previously published a proposed rule to establish a permanent municipal advisors’ registration regime on December 20, 2010, which was discussed in a previous Alert.
The SEC previously noted that once such a Final Rule was adopted, it would issue the new compliance date for the ban on third-party solicitation via a notice in the Federal Register. We will keep you apprised of any new developments with respect to compliance with the ban on third-party solicitation rules, including any compliance date released by the SEC.