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Abstract: 

Starting at the beginning of 2012, the U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board (MSRB) undertook several initiatives to change the practices of underwriters in the municipal securities market to better protect both investors and issuers. This paper discusses how recent enforcement actions and other regulatory actions, including the Municipalities Continuing Disclosure Cooperation Initiative and the National Exam Program Risk Alert, have altered underwriters’ responsibilities and their relationships with issuers; how the Municipal Advisor Rule and subsequent MSRB rulemaking have affected underwriters’ ability to provide issuers with guidance in structuring financing; what issuers can expect from underwriters moving forward and what new responsibilities issuers must assume; and how the market has responded with new products as a result of these regulations and requirements.

Keywords: Underwriters, municipal securities market, MSRB, SEC, MA Rule, MCDC Initiative

Affiliations:  1: Nixon Peabody LLP; 2: George K. Baum & Company; 3: Stifel Nicolaus & Company; 4: Stifel Nicolaus & Company; 5: Citi.