Municipal-bond advisers and analysts would face new regulation under the far-reaching financial overhaul bill passed by the U.S. House of Representatives. Among provisions that would create a new consumer protection agency and an oversight council for the financial system, the bill includes governance, conflict-of-interest and disclosure rules for credit agencies that rate the financial and operational strength of corporations and not-for-profit organizations. The bill, which passed 223-202 with no Republican support, also calls for the Securities and Exchange Commission to study ratings agencies’ separate treatment of corporate and not-for-profit debt and how it affects borrowers. Independent municipal financial advisers would also be required to register with the SEC, which would establish standards for advisers’ training, experience and competence. Chuck Samuels, counsel to the National Association of Health and Higher Educational Facilities Finance Authorities said tax-exempt borrowers would broadly benefit from provisions on credit rating agency transparency and oversight.
Late News: Financial system overhaul takes aim at rating agencies
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