January 15, 2014
Authored by: Dan Wheeler
The SEC announced on January 13, 2014 that compliance with the final municipal advisor registration rules will be phased in beginning July 1, 2014, notwithstanding that the final rules are effective on January 13, 2014 (following their September 30, 2013 adoption date). Municipal advisors currently registered under the temporary regime (there are currently about 1,100) are required to register under the permanent regime on a phased-in basis. As set forth in the table below, a municipal advisor’s temporary registration number determines the applicable compliance period during which the municipal advisor is required to register as such on the final registration forms under the final rules.
Temporary Registration Number Range –>Period for Filing Complete Application for Registration
- 866-00001-00 through 866-00400-00 –> July 1, 2014 to July 31, 2014
- 866-00401-00 through 866-00800-00 –> August 1, 2014 to August 31, 2014
- 866-00801-00 through 866-01200-00 –>September 1, 2014 to September 30, 2014
- after 866-01200-00 –> October 1, 2014 to October 31, 2014
If a person provides regulated “advice” after January 13, 2014, fits the definition of a municipal advisor, does not qualify for an exemption or exclusion and has not previously registered, then that person must register under the temporary registration rule and then register under the final rules under the above phase-in schedule. If a person enters the municipal advisory business after October 1, 2014, then the advisor must apply and register under the permanent registration regime. In any case, an advisor must register before engaging in municipal advisory activities.