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Chicago BD to Pay Over $105K for Failing to Register as Muni Advisor

What You Must Know

  • Loop Capital Markets is the primary broker-dealer to be charged for violating the municipal advisor registration rule.
  • The SEC ordered the agency to pay disgorgement and prejudgment curiosity of $5,457 and a civil penalty of $100,000.
  • The SEC additionally not too long ago filed a litigated motion towards Oppenheimer & Co. and reached settlements with BNY Mellon Capital Markets, TD Securities and Jefferies for failing to adjust to municipal bond providing disclosure necessities.

A Chicago-based broker-dealer has agreed to pay greater than $105,000 for violating the municipal advisor registration rule, The Securities and Trade Fee stated Wednesday.

Loop Capital Markets earned the doubtful distinction of being the primary BD to be charged for violating that rule, based on the SEC.

Based on an SEC order filed Wednesday, between September 2017 and February 2019, Loop Capital suggested a Midwestern metropolis to purchase specific fastened revenue securities, which town bought utilizing the proceeds of its personal municipal bond issuances.

The agency has been registered with the SEC as a BD since 1997. Loop Capital was quickly registered as a municipal advisor earlier than July 1, 2014, however has not been registered with the SEC as a municipal advisor since then, based on the SEC order.

The SEC additionally discovered that Loop Capital didn’t keep a system fairly designed to oversee its municipal securities actions and had insufficient procedures that included inadequate strategies to determine potential violations of the municipal advisor registration guidelines.

“The municipal advisor registration guidelines apply to all market contributors and are supposed to guard municipal entities from abuse,” based on LeeAnn Ghazil Gaunt, chief of the SEC Enforcement Division’s Public Finance Abuse Unit.


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