Blog FinReg + Policy Watch June 25, 2020

SEC Grants Muni Advisors a Temporary Exemption from Broker-Dealer Registration

On June 16, the SEC granted registered municipal advisers (MAs) a temporary, limited exemption (Exemption) from broker-dealer registration for certain expanded activities. The Exemption permits registered MAs to directly solicit “Qualified Providers” (banks, wholly-owned subsidiaries of banks that are engaged in commercial lending and financing activities and federally- or state-chartered credit unions) in connection with “Direct Placements” of municipal securities, subject to several requirements and limitations. The Exemption also permits MAs to receive transaction-based compensation for services provided in connection with the Direct Placement. The Exemption is valid through December 31, 2020. For additional information on the Exemption, including key takeaways, please look for an upcoming Goodwin client alert.

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