On August 3rd, the Municipal Securities Rulemaking Board reminded financial advisors to state and local government issuers that engaging in certain activities may cause them to be placement agents. The MSRB also warned that certain financings called "bank loans" may, in fact, be private placements of municipal securities. Financial advisors that introduce potential investors to issuers or negotiate with potential investors, in either case in exchange for transaction-based compensation, may be subject to federal securities laws, including MSRB rules that apply to broker-dealers. Engaging in these activities may make them subject to MSRB rules on placement agents. MSRB Press Release.