December 8, 2009
The Honorable Barney Frank
Chairman, House Committee on Financial Services
United States House of Representatives
2252 Rayburn House Office Building
Washington, D.C. 20515
The Honorable Spencer Bachus
Ranking Member
House Committee on Financial Services
2246 Rayburn House Office Building
Washington, D.C. 20515
Dear Chairman Frank and Ranking Member Bachus:
The Regional Bond Dealers Association (“RBDA”) strongly supports Congressional efforts to improve the regulatory structure of the financial markets. In particular, the RBDA believes that Section 7801 of H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009, as approved by the Financial Services Committee (the “Committee”), helps to close a long-standing regulatory gap by requiring the regulation of municipal financial advisors at the federal level. The RBDA believes the Committee’s efforts to require the regulation of municipal financial advisors by the Securities Exchange Commission reflects sound policy and will help to assure accountability by subjecting municipal market participants to consistent, federal standards.
The RBDA strongly opposes any effort to weaken the Committee’s actions regarding the regulation of municipal financial advisors. Specifically, the RBDA believes that an amendment submitted by Mr. Neugebauer, which would allow municipal financial advisors to avoid federal regulation if they are subject to state oversight, would undermine efforts to enhance the overall integrity of the public finance market. A patchwork system of state regulation for advisory professionals simply will not provide the same improvements to public finance services and the functioning of the municipal marketplace as consistent standards imposed at the federal level. Thus, we encourage your continued support for the regulation of municipal financial advisors as required by H.R. 4173 as approved by the Committee.
Thank you, again, for your continued leadership on this very important issue.
Respectfully submitted,
Michael Nicholas
Chief Executive Officer
