SIFMA today released the following statement from Kenneth E. Bentsen, Jr., executive vice president, public policy and advocacy, after the House of Representatives passed H.R. 2827, legislation clarifying the scope of muni advisor regulations under Dodd-Frank, that was co-sponsored by Representative Dold (R-IL) and Representative Gwen Moore (D-WI).
“The House today, in a bi-partisan fashion, took necessary and appropriate action to clarify how municipal advisors would be regulated for the first time. Prior to Dodd-Frank municipal advisors, consultants who advise state and local governments on bond issuance, use of derivatives and other related financial matters, were wholly unregulated. While Dodd-Frank sought to address this regulatory gap, the SEC proposed a rule to implement these provisions that went far beyond the scope and authority Congress had intended. This legislation appropriately clarifies the scope of regulatory oversight on municipal advisors.
“We appreciate Congressman Bob Dold’s leadership in sponsoring this legislation, and his work, particularly with Congresswoman Gwen Moore to craft a bill that will ensure proper regulatory oversight of municipal advisors without subjecting already regulated entities to an additional, unnecessary layer of regulation. We urge the Senate to consider this legislation before the end of this Congress.”