The SEC said today it has adopted a temporary rule requiring advisors who provide advice to state and local governments to register with the agency by Oct. 1.
The deadline was established by the newly-enacted Dodd-Frank Wall Street Reform and Consumer Protection Act.
Municipal advisors typically provide advice related to municipal derivatives, guaranteed investment contracts, investment strategies or the issuance of municipal securities, the SEC said. Municipal advisors also solicit business from a state or local government for a third party.
The registration can only be completed on the SEC's website, according to the agency.
"We have acted expeditiously to create a temporary registration system to gather key data and provide transparency about municipal advisors," said SEC Chairman Mary Schapiro. "As a result, regulators, investors, and state and local governments will have a much better understanding of those who provide services in the municipal market."
The SEC said it implemented the registration provision on an interim basis in order for municipal advisors to meet the new law's Oct. 1 registration deadline. A permanent rule is scheduled to be proposed later this year. Information filed by municipal advisors will be made publicly available on the SEC's website by the registration deadline.