10.2.11.2. Ban on Business
A contribution will trigger a ban on municipal securities business with a municipal entity if the contribution was made by any of the following:
- • Municipal securities broker-dealers
- • A municipal finance professional (MFP)—definition to follow
- • Political action committee (PAC) that is controlled by either the municipal securities dealer or an MFP of the municipal securities dealer
Municipal securities business in this context is defined as:
- • Purchase of securities in a primary offering from an issuer (a negotiated underwriting, not a competitive underwriting)
- • Offer or sale of securities in a private placement
- • Provision of financial advisory services or remarketing agent services for a primary offering (where the services were not chosen on a competitive bid basis)
These activities are subject to the two-year prohibition. Note that selling municipal securities to customers in the secondary market is not considered municipal securities business for this rule. Moreover, the two-year ban