Published in Last Word
The Municipal Securities Rulemaking Board (MSRB) adopted two ACEC-recommended revisions to its draft rule that would establish a fiduciary duty for municipal advisors, but failed to address a third key ACEC concern.
In response to Council comments, the MSRB clarified that the fiduciary duty only applies to a firm’s municipal entity clients and removed the requirement that firms disclose the amount of professional liability insurance they carry.
The Board did not address, however, the Council’s concern that the rule places the client’s financial interests over the professional engineer’s ethical duty to public safety, health, and welfare. Click here to view the ACEC comment letter urging the MSRB to act on this key issue.
The MSRB also recently proposed a draft pay-to-play rule, placing restrictions on political contributions that registered municipal advisors can make to state and local government officials. ACEC is seeking member input in preparation for submitting comments on this draft rule.
In addition, the SEC announced it will soon begin reviewing the business activities of registered municipal advisors. Click here for more information.
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