Municipal Adviser Presence Exams Include Focus on Compliance

The SEC’s Office of Compliance Inspections and Examinations has announced presence exams of newly registered municipal advisers.  Among the seven topics identified for review, OCIE will evaluate the firm’s supervision policies and procedures including MSRB Rule G-44 which requires a compliance program.  The exams will also focus on registration, fiduciary duty, disclosure, fair dealing, books and records, and training/licensing.  Registration of municipal advisers is required pursuant to new SEC rules that took effect on July 1.

OUR TAKE: Regulators, including the SEC and FINRA, continue to focus on compliance programs during examinations.

http://www.sec.gov/about/offices/ocie/muni-advisor-letter-081914.pdf