Direct Purchase and “Bank Loans”. This Notice reminds market participants that just because something is called a “bank loan” does not mean that it is not a municipal security, subject to all of the MSRB rules and to securities laws. The Notice also reminds market participants that direct purchase of a VRDO followed by a restructuring may trigger obligations under Rule G-32. Unfortunately, the Notice does not provide bright lines about when a transaction may trigger securities laws. Firms may want to consult with counsel to determine their obligations.
Delay of Muni Advisor Rules. The MSRB announced that several recent proposed rules covering municipal advisors, including the $300 per advisor assessment scheduled to go into effect on October 1, will be delayed until after the SEC provides a definition of who is a municipal advisor. The MSRB will refile the proposals after the SEC decides on the definition.
Delay of Ratings on EMMA. Credit ratings were to have been included on EMMA no later than October 13, 2011. The MSRB filed a proposal with the SEC to delay the date until no later than December 31, 2011 in order to complete negotiations with one of the ratings agencies.
