,i #aac? ,,congress #a/ ,session ,h4 ,r4 #gig ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,febru>y #ae1 #bjac ,mr4 ,/iv]s 7= himself1 ,ms4 ,moore1 & ,mr4 ,pe>ce7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to am5d ! ,securities ,ex*ange ,act ( #aicd to cl>ify provisions relat+ to ! regulation ( municipal advisors1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,municipal ,advisor ,ov]sight ,improvem5t ,act ( #bjac4 #b4 ,regi/ration ( municipal securities deal]s ,section #ae;,b7a77#a77;,b7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#d7;a77#a77;,b77 is am5d$ by /rik+ or on behalf (4 #c4 ,municipal ,securities ,rulemak+ ,bo>d2 rules & regulations ,section #ae;,b7b77#b77,l7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#d7;b77#b77,l77 is am5d$-- 7#a7 9 clause 7iii71 by /rik+ & at ! end2 7#b7 9 clause 7iv71 by /rik+ ! p]iod & ins]t+ 2 &2 & 7#c7 by add+ at ! end ! foll[+3 7v7 n regulate z a municipal advisor ! activities ( a p]son ref]r$ to 9 subp>agraph 7,c7 ( subsection 7e77#d71 to ! ext5t t su* activities are describ$ "u su* subp>agraph4 4 #d4 ,discipl9e ( municipal securities deal]s2 c5sure2 susp5sion or revocation ( regi/ration 7a7 ,9 g5]al ,section #ae;,b7c77#a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#d7;c77#a77 is am5d$ to read z foll[s3 7#a7 ,no brok]1 deal]1 or municipal securities deal] %all make use ( ! mails or any means or in/rum5tality ( int]/ate comm]ce to effect any transaction 91 or to induce or attempt to induce ! pur*ase or sale (1 any municipal security1 & no brok]1 deal]1 municipal securities deal]1 or municipal advisor %all make use ( ! mails or any means or in/rum5tality ( int]/ate comm]ce to provide advice to or on behalf ( a municipal entity or obligat$ p]son ) respect to municipal f9ancial products1 ! issuance ( municipal securities1 or to und]take a solicitation ( a municipal entity or obligat$ p]son1 9 contrav5tion ( any rule ( ! ,bo>d4 ,a municipal advisor1 :5 act+ pursuant to an engagem5t describ$ 9 subsection 7e77#d77;,a77i71 & any p]son associat$ ) su* municipal advisor1 %all be deem$ to h a fiduci>y duty ) respect to su* engagem5t to any municipal entity = :om su* municipal advisor acts z a municipal advisor1 & no municipal advisor may engage 9 any act1 practice1 or c\rse ( bus9ess :i* is n consi/5t ) su* municipal advisor's fiduci>y duty or t is 9 contrav5tion ( any rule ( ! ,bo>d4 ,9 issu+ regulations to c>ry out ! previ\s s5t5ce & subsection 7b77#b77,l77i71 ! ,bo>d %all-- 7,a7 require t a municipal advisor act 9 accordance ) its fiduci>y duty to its municipal entity cli5ts1 b only 9 connection ) ^? specific activities involv+ su* municipal entity cli5t describ$ "u subsection 7e77#d77;,a77i7 7& n exclud$ "u subsection 7e77#d77;,c772 7,b7 specify :5 su* duties beg9 & t]m9ate 9 relation to su* activities2 & 7,c7 n prohibit pr9cipal transactions by municipal advisors or ! receipt ( comp5sation bas$ on commissions or o!r /&>d comp5sation 9 relation to ! pur*ase or sale ( a security or o!r in/rum5t 7includ+ deposit or =eign ex*ange71 except t ! ,bo>d-- 7i7 may issue rules requir+ a municipal advisor to only engage 9 su* transactions or receive su* comp5sation 9 a mann] t is consi/5t ) ! municipal advisor's fiduci>y duty2 & 7ii7 may prohibit a municipal advisor t has be5 engag$ to provide advice ) respect to an und]writt5 (f]+ ( securities f concurr5tly act+ z an und]writ] ( su* (f]+4 4 7b7 ,te*nical correction 7#a7 ,9 g5]al ,section #ige7;c77#e7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act is am5d$ to read z foll[s3 7#e7 9 p>agraph 7#d71 by ins]t+ or municipal advisor aft] municipal securities deal] ea* place t t]m appe>s2 4 7#b7 ,effective date ,! am5dm5t made by p>agraph 7#a7 %all take effect on ! date ( ! enactm5t ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act1 z if includ$ 9 su* ,act4 #e4 ,def9ition ( inve/m5t /rategies ,section #ae;,b7e77#c7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#d7;e77#c77 is am5d$ to read z foll[s3 7#c7 ! t]m inve/m5t /rategies-- 7,a7 means plans or programs = ! inve/m5t ( ! direct proce$s ( municipal securities 7b n o!r public funds7 t are n municipal d]ivatives or gu>ante$ inve/m5t contracts1 & ! recomm5dation ( & brok]age ( municipal escr[ inve/m5ts1 :]e1 ) respect to ! municipal advisor (f]+ su* plans1 programs1 or recomm5dations1 su* proce$s ( municipal securities & municipal escr[ inve/m5ts-- 7i7 are kn[n or %\ld be kn[n to ! municipal advisor to be compris$ ( funds or inve/m5ts ma9ta9$ 9 a segregat$ acc\nt t is exclusively = ! purpose ( ma9ta9+ su* proce$s or escr[ inve/m5t2 or 7ii7 h be5 id5tifi$ to ! municipal advisor1 9 writ+1 z funds or inve/m5ts t con/itute ! proce$s ( municipal securities or municipal escr[ inve/m5ts2 & 7,b7 does n include-- 7i7 m]ely act+ z a brok] or pr9cipal ) respect to ! pur*ase or sale ( a security or o!r in/rum5t 7includ+ deposit or =eign ex*ange72 7ii7 provid+ a li/ (1 or price quotations =1 inve/m5t options or securities or o!r in/rum5ts :i* may be available = pur*ase or inve/m5t or :i* satisfy inve/m5t crit]ia specifi$ by a municipal entity2 7iii7 act+ z a cu/odian2 7iv7 provid+ g5]aliz$ in=mation conc]n+ inve/m5ts :i* are n tailor$ to ! specific inve/m5t objectives ( ! municipal entity2 or 7v7 provid+ advice ) respect to matt]s o!r ?an ! inve/m5t ( funds or f9ancial products2 4 #f4 ,def9ition ( municipal advisor ,section #ae;,b7e77#d7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#d7;e77#d77 is am5d$ to read z foll[s3 7#d7 ! t]m municipal advisor-- 7,a7 means a p]son 7:o is n a municipal entity or obligat$ p]son1 or an employee ( a municipal entity or obligat$ p]son7 t-- 7i7 is engag$1 = comp5sation1 by a municipal entity or obligat$ p]son to provide advice to a municipal entity or obligat$ p]son ) respect to municipal f9ancial products or ! issuance ( municipal securities1 includ+ advice ) respect to ! /ructure1 tim+1 t]ms1 & o!r simil> matt]s conc]n+ su* f9ancial products or issues2 or 7ii7 und]takes a solicitation ( a municipal entity2 7,b7 includes f9ancial advisors1 gu>ante$ inve/m5t contract brok]s1 ?ird-p>ty m>ket]s1 placem5t ag5ts1 solicitors1 f9d]s1 & swap advisors1 if su* p]sons are describ$ 9 ei!r ( clauses 7i7 or 7ii7 ( subp>agraph 7,a7 & are n exclud$ "u subp>agraph 7,c72 & 7,c7 does n include1 solely z a result ( _! p]=m+ ! foll[+ activities-- 7i7 any brok]1 deal]1 or municipal securities deal] regi/]$ ) ! ,commission1 to ! ext5t t su* brok]1 deal]1 or municipal securities deal] is s]v+ or is seek+ to s]ve z an und]writ]1 placem5t ag5t1 rem>ket+ ag5t1 deal]-manag]1 or 9 a simil> capacity1 or is provid+ advice relat$ to or 9 connection ) any su* activities & n = sep>ate comp5sation1 or any p]son associat$ ) su* a brok]1 deal]1 or municipal securities deal]2 7ii7 an inve/m5t advis] regi/]$ "u ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq47 or ) any ,/ate or t]ritory ( ! ,unit$ ,/ates t is provid+ inve/m5t advice 7:e!r or n ( a type t w\ld subject a p]son to regi/ration "u su* ,act71 or any p]son associat$ ) su* an inve/m5t advis]2 7iii7 any p]son regi/]$ "u ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 or ?is ,act 9 relation to su* p]son's activities ) respect to swaps or security-bas$ swaps t is provid+ advice relat$ to swaps or security-bas$ swaps1 or provid+ advice t is relat$ to or 9 connection ) any su* activities & n = sep>ate comp5sation1 or any p]son associat$ ) su* p]son2 7iv7 a f9ancial in/itution engag+ 9 any ( ! activities ref]r$ to 9 clause 7i71 7ii71 or 7iii7 pursuant to an exemption f regi/ration1 act+ z a deal] or pr9cipal ) respect to deposits1 =eign ex*ange1 or id5tifi$ bank+ products 7z def9$ 9 p>agraphs 7#a7 ?r\gh 7#e7 ( section #bjf7;a7 ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #gh;c7a7771 provid+ o!r traditional bank+ or tru/ s]vices o!rwise subject to a fiduci>y duty "u ,/ate or ,f$]al law1 provid+ adm9i/rative or op]ational s]vices or support1 or provid+ advice t is relat$ to or 9 connection ) any su* activities & n = sep>ate comp5sation2 7v7 any p]son subject to regulation by a ,/ate insurance regulator provid+ insurance products or s]vices or provid+ advice t is relat$ to or 9 connection ) any su* activities & n = sep>ate comp5sation2 7vi7 an acc\ntant 7or p]son associat$ ) su* acc\ntant7 provid+ cu/om>y & usual acc\nt+ s]vices1 includ+ any atte/ation or audit s]vice or issu+ lett]s = und]writ]s = a municipal entity or provid+ advice t is relat$ to or 9 connection ) any su* activities & n = sep>ate comp5sation2 7vii7 any attorney (f]+ legal advice or provid+ s]vices t are ( a traditional legal nature2 7viii7 an eng9e] provid+ eng9e]+ advice2 or 7ix7 any elect$ or appo9t$ memb] ( a gov]n+ body ( a municipal entity or obligat$ p]son1 ) respect to su* memb]'s role on ! gov]n+ body2 4 #g4 ,def9ition ( solicitation ( a municipal entity or obligat$ p]son ,section #ae;,b7e77#i7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#d7;e77#i77 is am5d$ by /rik+ or on behalf ( a municipal entity2 & & ins]t+ ! foll[+3 a municipal entity1 b communications on behalf ( a fund or o!r collective inve/m5t vehicle %all n be deem$ to be on behalf ( any inve/m5t advis] t advises or manages su* fund or inve/m5t vehicle24 #h4 ,def9ition ( municipal d]ivative ,section #ae;,b7e7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#d7;e77 is am5d$-- 7#a7 9 p>agraph 7#aj71 by /rik+ ! p]iod on ! end & ins]t+ a semicolon2 & 7#b7 by add+ at ! end ! foll[+3 7#aa7 ! t]m municipal d]ivative means a swap or security-bas$ swap 9 :i* a municipal entity is a c\nt]p>ty2 & 4 #i4 ,def9ition ( on behalf ( ,section #ae;,b7e7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#d7;e771 z am5d$ by section #g1 is fur!r am5d$ by add+ at ! end ! foll[+3 7#ab7 ! t]m to provide advice on behalf ( a municipal entity or obligat$ p]son means to provide advice to a p]son t is kn[n to be engag$ by a municipal entity or obligat$ p]son to provide s]vices to su* municipal entity or obligat$ p]son 9 connection ) ! issuance ( municipal securities4 4