Financial Institution Letter
FIL-6-2014
Federal Deposit Insurance Corporation January 31, 2014
550 17th Street NW, Washington, D.C. 20429-9990
Registration of Municipal Advisors – Final Rule
Summary: Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Act), Pub. L.
111-203, amended Section 15B(a) of the Securities Exchange Act of 1934 to make it unlawful for "municipal
advisors," as defined in the Act, to provide certain advice to or solicit municipal entities or certain other
persons without registering with the U.S. Securities and Exchange Commission (SEC). On September 20,
2013, the SEC issued a final rule, 17 C.F.R. § 240.15Ba1-1-8, implementing the Act and establishing a
permanent registration system for municipal advisors. In a separate release, the SEC extended the expiration
date of the temporary registration system under Rule 15Ba2-6T until December 31, 2014, to provide a
transition period between the temporary and permanent registration systems. The final rule is effective on July
1, 2014.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter
applies to any FDIC-supervised financial institution that meets the definition of “municipal advisor.”
Suggested Distribution: Highlights:
FDIC-Supervised Banks (Commercial and Savings)
"Municipal advisor" is defined as any person who is not a
Suggested Routing: municipal entity or an employee of a municipal entity who
Chief Executive Officer provides advice to or on behalf of a municipal entity or
Trust Officer obligated person regarding municipal financial products or the
Municipal Securities Dealer Division issuance of municipal securities.
Capital Markets Division
Compliance Officer
Banks are not considered municipal advisors to the extent
they provide advice concerning:
Related Topics: o Deposit accounts and other deposit instruments;
FIL-63-2010, October 1, 2010, Temporary o Extensions of credit, including the purchase of
Registration of Municipal Advisors municipal securities for a municipality’s own
accounts;
Attachments: o Any funds held in a sweep account; or
78 FR 67467, November 12, 2013 – Registration of
Municipal Advisors – Final Rule o Any investment made when acting as an indenture
trustee or similar fiduciary capacity.
Interim Temporary Final Rule Release No. 34- "Municipal financial products" is defined as municipal
70468, Extension of Temporary Registration of
Municipal Advisors
derivatives, guaranteed investment products, and investment
strategies, including plans and programs for the investment of
Municipal Advisor Registration - FAQs the proceeds of municipal securities offerings,
recommendations, and brokerage of municipal escrow
Contact: investments.
Anthony J. DiMilo, Examination Specialist – Trust,
(202) 898-7496
New municipal advisors whose activities commence before
September 30, 2014, must submit an application for
Note: temporary registration under Rule 15Ba2-6T.
FDIC Financial Institution Letters (FILs) may be New municipal advisors whose activities commence after
accessed from the FDIC's Web site at September 30, 2014, must file an application under the
www.fdic.gov/news/news/financial/2014/index.html. permanent registration system provided for in Rule 15Ba1-1-
8.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/index.html. The permanent registration system provides for staggered
compliance dates based on the advisor’s temporary
Paper copies of FDIC FILs may be obtained through registration number.
the FDIC's Public Information Center,
3501 Fairfax Drive, Room E 1002, Arlington, VA
Municipal advisors registered under the temporary system
22226 (1-877-275-3342 or 703-562-2200). must register under the permanent system when the
permanent registration period begins in July.
