FOR IMMEDIATE RELEASE
ICBA Backs Senate Bill Offering Relief from Municipal Advisor Mandate
Washington, D.C. (April 12, 2013)—The Independent Community Bankers of America® (ICBA) today expressed its support for legislation to exempt community banks from proposed regulations that would require community banks and their employees to register as municipal advisors with and be examined by the Securities and Exchange Commission. The Municipal Advisor Relief Act of 2013 (S. 710), sponsored by Sens. Pat Toomey (R-Pa.), Mark Warner (D-Va.), Jerry Moran (R-Kan.), Tom Carper (D-Del.) and Mike Johanns (R-Neb.), would prevent new and unnecessary regulatory burdens on Main Street community banks.
“Community banks have always provided traditional banking services to the municipal governments of the communities they serve under close supervision by state and federal banking regulators,” ICBA President and CEO Camden R. Fine said. “Municipal advisor registration and examination would pose a significant expense and regulatory burden for community banks without enhancing financial protections for municipal governments. Removing this unnecessary regulatory mandate will help community banks continue to contribute to growth and prosperity on Main Street.”
Municipal advisors were established in the Dodd-Frank Act as a new class of regulated persons who advise state and local governments on financial matters, including bond issuance, investment of bond proceeds, and financial derivatives usage. A separate House bill introduced in February would clarify the municipal advisor definition to prevent financial market participants who do not advise municipalities from facing improper, duplicative and onerous regulations. The Municipal Advisor Oversight Improvement Act, sponsored by Reps. Steve Stivers (R-Ohio) and Gwen Moore (D-Wis.), is identical to legislation that unanimously passed in the House last year but was not taken up in the Senate.
Exempting community banks from new municipal advisor registration burdens is among the provisions of ICBA’s Plan for Prosperity regulatory-relief agenda for the 113th Congress, which is designed to provide targeted relief from the regulations stunting the nation’s economic recovery.
For more information, visit www.icba.org.
The Independent Community Bankers of America®, the nation’s voice for nearly 7,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit www.icba.org.