Regulatory Disclosures
Municipal Advisor Disclosures
The following disclosures are provided pursuant to MSRB and SEC registration requirements and the obligations of MSRB Rules G-42, G-10, G-37, and G-20.
MSRB and SEC Municipal Advisor Registration
CalMuni Advisors LLC is a registered municipal advisor with the Municipal Securities Rulemaking Board (MSRB Registration No. K0972) and with the U.S. Securities and Exchange Commission (Municipal Advisor Registration No. 0001629575).
CalMuni Advisors LLC is an Independent Registered Municipal Advisor (IRMA) for purposes of the SEC rules regarding the registration of municipal advisors. CalMuni Advisors LLC is independent of any firm, including any broker-dealer, underwriter, or any other firm, and does not provide underwriting services. None of our associated individuals have worked for a broker-dealer within the past two years.
A list of CalMuni Advisors LLC's municipal advisor representatives can be found on the MSRB website at msrb.org/MARegistrants.aspx.
MSRB Rule G-42: Duties of Non-Solicitor Municipal Advisors
Municipal Securities Rulemaking Board Rule G-42 establishes core standards of conduct for municipal advisors engaging in municipal advisory activities. A municipal advisor engaging in municipal advisory activities on behalf of a municipal entity or obligated person client is subject to a fiduciary duty under Rule G-42, which includes a duty of care and a duty of loyalty. This obligation requires the municipal advisor to forgo engaging in municipal advisory activities on behalf of a client if it cannot manage or mitigate its conflicts of interest in a manner that will permit it to act in the client's best interest. A municipal advisor must also undertake a reasonable investigation to determine that it is not basing any recommendation on materially inaccurate or incomplete information.
A municipal advisor has a duty, prior to or upon engaging in municipal advisory activities, to make written disclosure to its client of any known material, actual or potential conflicts of interest that could reasonably be anticipated to impair the municipal advisor's ability to provide advice to, or on behalf of, the client. Such disclosure must include an explanation of how the municipal advisor addresses or intends to manage or mitigate each conflict. A municipal advisor must also provide the client, prior to or upon engaging in municipal advisory activities, written disclosure of any legal or disciplinary event that is material to the client's evaluation of the municipal advisor or the integrity of its management or advisory personnel.
Legal or Disciplinary Events
CalMuni Advisors LLC has never been subject to any legal, disciplinary, or regulatory actions.
Clients may electronically access CalMuni Advisors LLC's most recent Form MA and Form MA-I filed with the SEC at www.sec.gov/cgi-bin/browse-edgar by searching for CalMuni Advisors LLC or CIK No. 0001629575.
Regulatory Duties When Servicing Clients
MSRB Rule G-42 requires a municipal advisor to make a reasonable inquiry as to the facts that are relevant to a client's determination whether to proceed with a course of action or that form the basis for any advice provided by the municipal advisor to the client. The rule also requires that the municipal advisor undertake a reasonable investigation to determine that it is not basing any recommendation on materially inaccurate or incomplete information. The municipal advisor is required under the rule to use reasonable diligence, to know the essential facts about the client, and to understand the authority of each person acting on the client's behalf.
Each client agrees to cooperate, and to cause its agents to cooperate, with CalMuni Advisors LLC in carrying out these regulatory duties, including providing accurate and complete information and reasonable access to relevant documents, other information, and personnel needed to fulfill such duties. In addition, each client agrees that, to the extent the client seeks to have CalMuni Advisors LLC provide advice with regard to any recommendation made by a third party, the client will provide written direction to do so as well as any information it has received from such third party relating to its recommendation.
MSRB Rule G-10: Investor and Municipal Advisory Client Education and Protection
Pursuant to MSRB Rule G-10, CalMuni Advisors LLC provides the following information in writing to each client upon engagement and at least annually thereafter:
- CalMuni Advisors LLC is a registered municipal advisor with the MSRB (Registration No. K0972) and with the SEC (Municipal Advisor Registration No. 0001629575). Certificates of registration are available upon request. A list of CalMuni Advisors LLC's municipal advisor representatives can be found on the MSRB website at msrb.org/MARegistrants.aspx.
- Clients may obtain a municipal advisory client brochure posted on the MSRB website at www.msrb.org.
MSRB Rule G-37: Political Contributions
MSRB Rule G-37 prohibits municipal advisors from engaging in municipal advisory business with clients if certain political contributions have been made to officials of such municipal entities. The rule also requires municipal advisors to disclose certain political contributions and other information to allow public scrutiny of such contributions and the municipal advisory business of municipal advisors.
Pursuant to CalMuni Advisors LLC's policies, employees and associated individuals of the firm are prohibited from making direct or indirect political contributions that would implicate the pay-to-play provisions of MSRB Rule G-37.
MSRB Rule G-20: Gifts, Gratuities, and Non-Cash Compensation
MSRB Rule G-20 protects against improprieties and conflicts of interest that may arise when a municipal advisor or its associated persons give gifts or gratuities in relation to the municipal advisory activities of the recipients' employers.
Pursuant to CalMuni Advisors LLC's policies, employees and associated individuals of the firm are prohibited from giving direct or indirect gifts or gratuities in relation to the municipal advisory activities of the firm, in excess of the limits established by MSRB Rule G-20.