MSRB and FINRA issue joint notice cautioning broker-dealers and municipal advisors about bank loans
Abstract
Purpose
To alert lenders, broker-dealers and municipal advisors to a joint regulatory notice from the Municipal Securities Rulemaking Board (“MSRB”) and the Financial Industry Regulatory Authority (“FINRA”) regarding direct purchase or “bank loan” transactions.
Design/methodology/approach
Explains the MSRB and FINRA notice, why the notice was issued, what lenders should know about the notice, what broker-dealers and municipal advisors should know about the notice, and what MSRB rules could apply to bank loans.
Findings
Firms should determine whether state and local government obligations acquired through bank loan transactions constitute municipal securities for federal securities law purposes.
Originality/value
Review of a recently issued regulatory notice by experienced municipal securities lawyers.
Keywords
Citation
Huang, J.H., Burr, J.C., Cosgrove, R.A. and Odem, N.H.B. (2016), "MSRB and FINRA issue joint notice cautioning broker-dealers and municipal advisors about bank loans", Journal of Investment Compliance, Vol. 17 No. 3, pp. 52-54. https://doi.org/10.1108/JOIC-07-2016-0030
Publisher
:Emerald Group Publishing Limited
Copyright © 2016 Chapman and Cutler LLP. All rights reserved.