Municipal Advisors
Municipal advisors provide advice to, or on behalf of, municipal entities or an obligated person. The municipal advisor has a fiduciary duty to the municipality, which means the municipal advisor must act in the municipality’s best interests. According to the MSRB, municipal advisor activities include the definition covered in Exchange Act Section 15b; that is:
- • Providing advice about municipal financial products
- • Providing advice about the issuance of municipal securities
- • Soliciting municipal entities to invest in financial products
- • Soliciting municipal entities to issue municipal securities
This includes any advice regarding the investment of proceeds from any municipal issuance.
MSRB Rule D-13
Natural persons are excluded from registering as municipal advisors as long as they only engage in municipal advisory activities on behalf of a municipal advisor employer. If the natural person is a sole proprietor, he must register as a municipal advisor.
Municipal advisors include financial advisors, guaranteed investment contract (GIC) brokers, third party marketers, placement agents, solicitors, and finders. Municipal advisors do not include:
- • Municipal entities or their emp