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Business and Policy Areas
Business and Policy Areas

Final SEC Rule on Municipal Advisors

September 20, 2013

In a press release dated September 18, 2013, the Securities and Exchange Commission approved registration rules for municipal advisors and exempted college and university board members and employees from the registration requirement. More than two years ago, NACUBO had informed our members of the proposed requirement for board members and employees to register as municipal advisors if they advised on how to invest proceeds of a bond offering.

The SEC adopted a final rule requiring municipal advisors to register with the Commission. The final rule clarifies the definition of a "municipal advisor." Specifically, this clarification exempts "Members of a board of trustees of a public or private non-profit university acting in their official capacity, where the university is an obligated person by virtue of borrowing proceeds of municipal bonds issued by a state governmental educational authority. Similarly, this exemption covers employees of a municipal entity or an obligated person to the extent that they act within the scope of their employment."


Bob Shea
Senior Fellow, Finance and Campus Management