AICPA Applauds House Passage of Legislation Narrowing Definition of "Municipal Advisor;" Urges Senate to Follow Suit
Published September 19, 2012
Washington (Sept. 19, 2012) – The American Institute of CPAs (AICPA) issued the following statement by President and CEO Barry Melancon, CPA, CGMA, in response to the U.S. House of Representatives’ passage of H.R. 2827, which would amend the Securities Exchange Act of 1934 (as amended by Section 975 of the Dodd-Frank Act) to clarify the definition of a “municipal advisor”:
“The AICPA commends the House for its passage of H.R. 2827, which narrows the definition of ‘municipal advisor’ without weakening investor protections in the municipal securities market afforded by the Dodd-Frank Act.
“By narrowing the definition at the time of the bill’s mark-up last week, the House Committee on Financial Services acknowledged that accountants providing ‘customary and usual services’ to municipal entities are already subject to layers of regulation that adequately and appropriately protect investors, making additional regulation by the SEC unnecessary.
“We are pleased that the full House approved the legislation by voice vote. We thank Representatives Robert Dold and Gwen Moore, in particular, for their leadership on the issue. And we urge the Senate to look favorably on the measure.”