The regulatory regime applicable to bank fiduciaries satisfies the principles underlying the MSRB’s Draft Rule G-44. Compliance with already applicable regulations (and guidance) should be deemed to constitute compliance with Rule G-44 for bank fiduciaries that are municipal advisers.
ABA further noted that allowing bank fiduciaries to rely on the banking industry’s rigorous supervision would avoid a costly layering of regulatory burden with an additional securities-oriented compliance regime. “We are concerned that applying the draft rule’s requirements to bank fiduciaries would impose a duplicative and conflicting regulatory regime with no observable benefit to fiduciary clients, who ultimately would bear the costs of such redundant regulation,” ABA said.
Read the letter.
View ABA resources on municipal advisers.