BDA Representing Middle Market and Regional Dealers at House Financial Services Subcommittee Hearing

Today, the BDA, represented by Michael Marz, Vice Chairman of FirstSouthwest, testified before the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises for a hearing entitled, “The Impact of the Dodd-Frank Act on Municipal Finance.”

In his testimony, Marz renews the BDA’s call for a level regulatory playing field to protect the public interest with regard to independent and bank affiliated municipal financial advisors saying, “[a]lmost two years after Dodd-Frank, virtually anyone can act as a non-dealer municipal financial advisor to an issuer of municipal securities, regardless of qualifications, while more and more restrictions are focused on broker dealers, including regulated dealer advisors.”

Additionally, Marz reiterates BDA’s concern that the SEC needs to issue a definition of municipal advisor that is narrowly and appropriately focused on those who advise on the issuance of municipal bonds and on the investment of bond proceeds, adding that “[u]ntil that occurs, the Commission cannot undertake step two which is to regulate independent municipal advisors to stop pay to play, require conflicts to be disclosed, and impose adequate professional standards.”

For a copy of BDA’s full written statement, click [here.]

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