FILE: DEC
MUNICIPAL ADVISOR
The Ouachita Parish School Board may, as an issuer of municipal securities, retain the services of an Independent Registered Municipal Advisor (IRMA) prior to the undertaking of public debt financing or re-financing unless the school board has sufficient in-house expertise and access to current bond market information.
The role of the municipal advisor in accordance with the Municipal Securities Rulemaking Board (MRSB) is to assist the School Board in the structuring and issuance of bonds whether through a competitive or a negotiated sale process. A municipal advisor may also be retained for other types of financial transactions, such as investments and swaps. The municipal advisor shall provide the School Board advice in these matters. While a municipal advisor plays a key role on the financing team, the School Board remains in control of the decision making processes necessary for the issuance and sale of the bonds or implementing the financing.
The IRMA shall represent the issuer in the sale of bonds and has an explicit fiduciary duty to the School Board in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act and Securities and Exchange Commission oversight. School Board members and the School Board’s employees acting as agents shall be excluded from complying with Municipal Advisor registration requirements if acting in their official capacity, if an IRMA is appointed to represent the School Board.
The selection process of a Municipal Advisor shall be based on merit, and a reasonable effort must be taken to ensure the municipal advisor has the necessary expertise to assist the School Board in determining the best type of financing for the School Board by requiring the individual or firm to meet the following requirements:
Be an Independent Registered Municipal Advisor (IRMA) with both the Securities and Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB) pursuant to Section 15B of the Exchange Act.
Demonstrate extensive experience in providing municipal advisory services for competitive and negotiated sales.
Not currently acting as the underwriter in a transaction with the School Board or in the last two (2) years for any debt transaction of the School Board.
The IRMA shall not be a broker, dealer, or municipal securities dealer serving as an underwriter (as defined in Section 2(a)(11) of the Securities Act of 1933); any investment advisor registered under the Investment Advisers Act of 1940; any commodity trading advisor registered under the Commodity Exchange Act; attorneys offering legal advice or providing services of a traditional legal nature; and engineers providing engineering advice.
The written agreement for municipal advisor services shall include a clear and concise scope of work specifying services, the term of the contract, basis of compensation, and name individuals assigned to issuer and in charge of day-to-day management. A provision shall also be included prohibiting the municipal advisor from engaging in activities on behalf of the School Board that produces a direct or indirect financial gain for the municipal advisor, other than the agreed-upon compensation, without the School Board’s informed consent.
A broker-dealer firm that also provides financial advisory services (in contrast to a non-broker-dealer municipal advisor) is prohibited from serving both as a municipal advisor to the School Board and as an underwriter on the same transaction. The municipal advisor shall not be the underwriter on current or future debt issues as long as they continue in the role of municipal advisor for the School Board or for a period of two (2) years after the termination of municipal advisor services.
The School Board reserves the right to select more than one municipal advisor.
The School Board shall provide public disclosure on its website of the independent registered municipal advisor exemption to the SEC Municipal Advisor Rule and the selection of a Municipal Advisor as its representative for the issuance of municipal securities.
New policy: February 9, 2016
Ref: Municipal Securities Rulemaking Board (MSRB) Rule G-23
La. Rev. Stat. Ann. §17:81
Board minutes, 2-9-16
Ouachita Parish School Board