General Information Not Considered Advice
Advice does not include general information that is given to a municipal entity. This is sometimes referred to as the general information exclusion.
General information must be based on facts, and it must not contain subjective opinions. Recommendations tailored to a municipal entity’s needs or objectives with respect to municipal securities are strictly prohibited. Information that is tailored to a specific municipal entity may be considered a recommendation if it contains subjective assumptions, opinions, or views that may be interpreted as a suggestion that the municipality take (or not take) action.
Firms and securities professionals that are not registered municipal advisors cannot provide information to a municipality or answer questions about municipal securities unless it is in the form of general information, unless it meets a specific exemption.
Examples of what the SEC considers general information include:
•Information regarding a person’s professional qualifications and prior experience (e.g., descriptions of past municipal securities transactions)
•General market and financial information (e.g., market statistics regarding issuance activity for municipal securities, or current market interest rates or index rates for different types of bonds or categories of credits)
•Information