The legislation 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. The committee is slated to consider H.R. 2827 today.
In a memo James Ballentine, ABA EVP for congressional relations said,
The SEC’s proposal would require registration and reporting not only by banks, but also by individual bank employees giving ‘advice’ -- a term which is not defined -- with enforcement and examination handled by the SEC instead of by bank regulators.Ballentine emphasized that the required registration would impose a new and different layer of regulation and examination on banks for no meaningful public purpose. He noted that Capital Markets Subcommittee members said during a recent hearing on the issue that this was not Congress’ intent when it approved Section 975.
ABA strongly believes a complete exemption is required [for commercial banks and savings and loan associations] because these institutions provide such a broad array of traditional banking products and services to municipalities that any attempt to categorize them would necessarily be incomplete.Read the memo.