The House Financial Services’ Capital Markets Subcommittee approved by a 21-10 vote an ABA-supported bill (H.R. 2827) that would clarify what constitutes a municipal adviser and would exempt banks from the SEC’s proposed rule implementing the Dodd-Frank Act’s Section 975.
ABA in a memo Tuesday urged the panel to approve Rep. Robert Dold’s (R-Ill.) legislation because, among other things, the SEC’s proposed rule would require thousands of bankers and their banks to register as municipal advisers for offering the traditional services they have provided to towns and cities for decades.
H.R. 2827’s exemption “provides certainty to banks, already subject to comprehensive regulation, that they may continue to serve their communities without triggering unduly burdensome regulation by yet another regulatory entity,” James Ballentine, ABA EVP for congressional relations, said in the memo.
Read ABA’s memo.