Next week marks the start of the municipal advisor rule, requiring that firms offering advice on management of muni proceeds or escrows or muni-bond issuance will have to register with the Municipal Securities Rulemaking Board and the Securities and Exchange Commission. Regulatory and compliance costs are significant, a disadvantage to smaller firms. Some expect issuers will move from the tax-exempt bond market to the direct loan and banking market. SIFMA's Leslie Norwood noted she wouldn't be surprised if the changes spurred that shift.

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