SEC's Broad Municipal Adviser Rule Risks Collateral Damage

Law360, New York (July 20, 2012, 5:59 PM EDT) -- In trying to regulate municipal bond advisers under the Dodd-Frank Act, the U.S. Securities and Exchange Commission vastly overshot the mark and crafted a rule that could burden banks, elected officials and college boards with unnecessary and costly agency requirements, industry groups say.

The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the SEC to register financial advisers in the $3.7 trillion municipal bond market, but in its first attempt to determine who qualifies as a municipal adviser, the agency proposed a broad definition that...
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