New Registration Requirement in Dodd-Frank Legislation May Affect Advisors to State and Local Governments as Well as Persons Who Solicit Public Pension Funds

September 15, 2010
Provisions added to the Exchange Act by the Dodd-Frank Legislation may affect advisers and others who offer certain financial products and services to state and local governments. Those who fall within the new definition of a “municipal advisor” must register with the SEC by October 1, 2010. Although an exemption from registration is provided for registered investment advisers, it is unclear how it will be interpreted by the SEC in some instances. Unregistered third parties used to solicit investments from public pension funds will be affected. This update examines who is obligated to register as a municipal advisor as well as how to register.