Financial advisers to states, cities, school districts and other issuers in the U.S. municipal bond market must register with the Securities and Exchange Commission by Oct. 1, the federal regulator announced on Thursday.
The SEC said it adopted a temporary rule requiring the registration to meet the Oct. 1 deadline established by financial regulation legislation enacted this summer. A permanent rule will be proposed later this year, it added.
"We have acted expeditiously to create a temporary registration system to gather key data and provide transparency about municipal advisers," said SEC Chairman Mary L. Schapiro in a statement.
"As a result, regulators, investors, and state and local governments will have a much better understanding of those who provide services in the municipal market," she added.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Barack Obama in July, is aimed at stopping the kind of risky behavior on Wall Street that helped trigger a global financial meltdown in 2007-2009.
The registration requirement applies to financial advisers, guaranteed investment contract brokers, third-party marketers, placement agents, solicitors, finders and certain swap advisers providing municipal advisory services, according to the SEC.
Registration forms can be accessed and completed on the SEC's Web site. The commission said advisers must provide contact information, pick from a list of municipal advisory activities and disclose their disciplinary history.
Information from the registration will be publicly available on the website by Oct. 1, the SEC said.
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