Volume 16, Number 3 -- SEPTEMBER 1996
The Board has elected its Chairman and Vice Chairman for its 1997 fiscal year. Mr. Roger G. Hayes will serve as Chairman and Mr. Charles D. Mires as Vice Chairman. They will begin their terms on October 1, 1996.
Mr. Hayes is Managing Director of Municipal Finance for NationsBanc Capital Markets, Inc., a securities underwriting and dealing subsidiary of NationsBank Corporation. He is located in the headquarters office in Charlotte, North Carolina. He has twenty-four years of experience in municipal sales, trading, underwriting, and public finance activities. He graduated in 1968 from Duke University.
Mr. Mires is Assistant Vice President and Manager of the Municipal Bond Division for Allstate Insurance Company in Northbrook, Illinois and has held this position since 1987. Prior to that time, he was a Portfolio Manager for Bank One, Dayton, Ohio and Flagship Financial. He received a B.S. in Business and Financial Economics from Miami University in 1982.
Rule G-37, on political contributions and prohibitions on municipal securities business, provides that a dealer will be banned from municipal securities business with an issuer for a two-year period if certain contributions are made to officials of such issuer. The definition of "contribution" contained in rule G-37(g)(i) includes, in addition to direct contributions to an official of an issuer, monies given for transition or inaugural expenses and the payment of debt for an election. Thus, the Board wishes to remind dealers that any contributions given by a dealer or dealer-controlled PAC for the above purposes for the benefit of an issuer official would lead to a two-year ban on municipal securities business with the issuer. Contributions by a municipal finance professional for the above purposes for the benefit of an issuer official would also lead to a ban on municipal securities business with the issuer unless the contributions meet the de minimis exception for municipal finance professionals. The de minimis exception allows a municipal finance professional to contribute up to $250 per candidate per election if the municipal finance professional is entitled to vote for that issuer official. The de minimis exception is keyed to an election cycle; therefore, if a municipal finance professional contributed $250 to the general election of an issuer official, the municipal finance professional would not be able to make any contributions to pay for transition or inaugural expenses without causing a ban on business with the issuer. If a municipal finance professional made no contributions to an issuer official prior to the election, then the municipal finance professional may, if entitled to vote for the candidate, contribute up to $250 to pay for transition or inaugural expenses and payment of debt incurred in connection with the election without causing a ban on business. In addition, if a candidate for an issuer official position loses an election, after the election the individual is no longer considered to be within the definition of "official of an issuer" and any monies given for the payment of debt incurred in connection with the election would not come under rule G-37.
Securities Firm Representatives
Effective date for technical amendment to rule G-9
Due date for Form G-37/G-38 to be filed with the Board
(for the period July 1, 1996 - September 30, 1996)
Comments due on draft amendment to rule G-32
Comments due on Board's arbitration program
Rule G-39 and related amendments
Amendment to rule G-14
Amendments to rules G-37 and G-8
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