THE NATIONAL ASSOCIATION OF INDEPENDENT PUBLIC FINANCE
ADVISORS OPPOSES H.R. 2827 – THE DOLD AMENDMENT
The National Association of Municipal Advisors (“NAMA”), the largest association of independent public financial advisors in the country, does not support H.R. 2827 – The Dold Amendment, as it is currently written.
“We are supportive of Congress’s determination to clarify who is a Municipal Advisor and to make it clear that any appointed or elected member of a municipal entity’s governing body is exempt from the definition of Municipal Advisor. Our support of these goals is outweighed in this case by our concern that the Dold Amendment will weaken Dodd-Frank’s protection for municipal entities and taxpayers.”
“We are concerned that H.R. 2827 will make it much more difficult to regulate the parties that need to be regulated as Municipal Advisors. As written, parties are considered Municipal Advisors only if they have a written contract and receive compensation”
“Additionally, H.R. 2827 permits some market participants, for example, underwriters and placement agents, to provide advice to municipal entities on matters such as the structure, timing and terms of a municipal securities
issuance or financial product without fear of obtaining corresponding fiduciary duties; NAMA is concerned that this will cause issuers to believe that they are receiving advice that is in their best interest since it will have been provided in connection with matters identical to those encapsulated within the definition of Municipal Advisor.”
NAMA will continue to work with Congressional representatives and other market participants to craft legislative and regulatory solutions. The U.S. House of Representatives staffs who have been drafting these amendments have been open to all concerns and are to be commended for trying to find common ground. NAMA is committed to find a solution that clearly delineates the role of the Municipal Advisor so long as the financial interests of municipal entities and taxpayers are protected.