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SEC rulemakings on municipal advisers and pay ratio rules

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Sep 18, 2013

At today's open meeting, SEC Chair Mary Jo White announced that the SEC is considering rulemakings regarding municipal advisers and "pay ratio" rules.

Municipal advisers

The SEC issued a final rule and rule extension (links to SEC's Web site) regulating municipal advisers, meant to protect municipalities from the risks associated with investing with unregulated municipal advisers by requiring municipal advisers to (1) register with the SEC, (2) act in the best interest of their clients, and (3) be overseen by the SEC and the Municipal Securities Rulemaking Board. The final rule provides exemptions for certain professional services and already-regulated activities. The final rule also provides a phase-in period for compliance, with permanent registration beginning on July 1, 2014. More information is available in the press release on the SEC's Web site.

Pay Ratio

The SEC issued a proposed rule (link to SEC's Web site) that would require companies to disclose their "pay ratio," or the ratio of the total annual compensation of the median employee to the annual total compensation of the company's CEO, thus implementing Section 953(b) of the Dodd-Frank Act. The pay ratio disclosure would be required in any annual report, proxy or information statement, or registration statement that requires executive compensation disclosure. More information is available in the press release on the SEC's Web site and in Deloitte's September 19, 2013, Accounting Journal Entry: SEC proposes rule on "pay ratio" disclosures.

Speeches from today's open meeting on these topics are available on the SEC's Web site:

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.