Members of Congress -with BDA Support- Urge SEC to Withdraw Exemptive Order

BDA Leads Aggressive Lobbying Against TCE

Today, with support and assistance from the BDA, Representatives French Hill (R-AR) and Vincente Gonzalez (D-TX) wrote the SEC in opposition of the Temporary Exemptive Order for Municipal Advisors.The legislators urged the Commission to withdraw the original proposed order and ensure that the TCE expires on December 31st 2020 citing investor protection concerns and lack of market need.

The letter can be viewed here

Other Highlights

  • While this measure is temporary in nature, and some changes have been made related to the size and qualified purchasers of the issue, we believe this Order unnecessarily weakens investor protections for consumers who purchase these municipal securities as it will deprive these investors of the full financial picture of an issuer as well as cause a lack of transparency in the market as a whole.”
  • “Unfortunately, we believe the decision to issue this Order under the guise of COVID-related relief was not warranted, as the municipal markets are now, and have been functioning quite well due to in part to the programs created by the Treasury Department and  Federal Reserve, including the Municipal Liquidity Facility (MLF). “
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