Public Finance – 2012 in Review and the Outlook for 2013

    January 2013

    2012 was an active year for regulation of the municipal market, particularly for matters relating to federal securities and federal tax laws. To review important regulatory issues in 2012 and look ahead to 2013, Squire Sanders Public Finance lawyers have assembled Public Finance – 2012 in Review and the Outlook for 2013.

    Topics from 2012 include:

    • Underwriters Consent to Document Amendments
    • Voluntary Disclosure of Private Bank Loans and Purchases
    • SEC Approves MSRB Interpretive Notice Addressing Rule G-17 to Underwriter-Municipal Issuer Relationships
    • SEC Releases Report on the Municipal Securities Market
    • SEC and CFTC Begin to Issue Final Rules Regarding Derivative Instruments
    • IRS Sends Compliance Check Questionnaires to Issuers of QSCBs and to Issuers of Governmental Use and 501(C)(3) Bonds
    • IRS Clarifies Qualified Energy Conservation Bond Provisions
    • Potential Effect of Sequestration on Direct Pay Subsidies

    Our lawyers anticipate the next year will involve:

    • SEC finalizing the municipal advisor rules
    • Update to the SEC’s 1994 Interpretive Guidance on disclosure obligations of municipal issuers
    • Additional amendments to SEC Rule 15c2-12
    • Continued IRS focus on using "soft contacts" as enforcement mechanisms and on the "issue price" of bonds
    • Potential limits on the federal subsidy of state and local bonds as part of broader tax reform
    • Finalizing TEFRA approval rules for private-activity bonds
    • IRS and Treasury guidance for Build America Bonds and other direct-pay bonds