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tracts of sale of a commodity for future deliv-
ery, traded on or subject to the rules of a con-
tract market or any board of trade; or 
‘‘(iii) aided, abetted, counseled, com-
manded, induced, or procured the violation by 
any person of any provision of any statutory 
provisions enacted by a foreign government, or 
rules or regulations thereunder, empowering a 
foreign financial regulatory authority regarding 
transactions in securities, or contracts of sale of 
a commodity for future delivery, traded on or 
subject to the rules of a contract market or any 
board of trade, or has been found, by a foreign 
financial regulatory authority, to have failed 
reasonably to supervise, with a view to pre-
venting violations of such statutory provisions, 
rules, and regulations, another person who com-
mits such a violation, if such other person is 
subject to his supervision; or 
‘‘(H) is subject to any final order of a State se-
curities commission (or any agency or officer per-
forming like functions), State authority that super-
vises or examines banks, savings associations, or 
credit unions, State insurance commission (or any 
agency or office performing like functions), an ap-
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propriate Federal banking agency (as defined in sec-
tion 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813(q))), or the National Credit Union Ad-
ministration, that— 
‘‘(i) bars such person from association with 
an entity regulated by such commission, author-
ity, agency, or officer, or from engaging in the 
business of securities, insurance, banking, sav-
ings association activities, or credit union activi-
ties; or 
‘‘(ii) constitutes a final order based on vio-
lations of any laws or regulations that prohibit 
fraudulent, manipulative, or deceptive conduct. 
‘‘(5) Pending final determination whether any reg-
istration under this subsection shall be revoked, the Com-
mission, by order, may suspend such registration, if such 
suspension appears to the Commission, after notice and 
opportunity for hearing, to be necessary or appropriate in 
the public interest or for the protection of investors. Any 
registered municipal financial adviser may, upon such 
terms and conditions as the Commission deems necessary 
or appropriate in the public interest or for the protection 
of investors, withdraw from registration by filing a written 
notice of withdrawal with the Commission. If the Commis-
sion finds that any registered municipal financial adviser 
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is no longer in existence or has ceased to do business as 
a municipal financial adviser, the Commission, by order, 
shall cancel the registration of such municipal financial 
adviser. 
‘‘(6)(A) With respect to any person who is associated, 
who is seeking to become associated, or, at the time of 
the alleged misconduct, who was associated or was seeking 
to become associated with a municipal financial adviser, 
the Commission, by order, shall censure, place limitations 
on the activities or functions of such person, or suspend 
for a period not exceeding 12 months, or bar such person 
from being associated with a broker, dealer, investment 
adviser, municipal securities dealer, transfer agent, na-
tionally recognized statistical rating organization, or mu-
nicipal financial adviser, if the Commission finds, on the 
record after notice and opportunity for a hearing, that 
such censure, placing of limitations, suspension, or bar is 
in the public interest and that such person— 
‘‘(i) has committed or omitted any act, or is 
subject to an order or finding, enumerated in sub-
paragraph (A), (D), (E), (G), or (H) of paragraph 
(4) of this subsection; 
‘‘(ii) has been convicted of any offense specified 
in subparagraph (B) of such paragraph (4) within 
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10 years of the commencement of the proceedings 
under this paragraph; or 
‘‘(iii) is enjoined from any action, conduct, or 
practice specified in subparagraph (C) of such para-
graph (4). 
‘‘(B) It shall be unlawful— 
‘‘(i) for any person as to whom an order under 
subparagraph (A) is in effect, without the consent of 
the Commission, willfully to become, or to be, associ-
ated with a municipal financial adviser in contraven-
tion of such order; or 
‘‘(ii) for any municipal financial adviser to per-
mit such a person, without the consent of the Com-
mission, to become or remain, a person associated 
with the municipal financial adviser in contravention 
of such order, if such municipal financial adviser 
knew, or in the exercise of reasonable care should 
have known, of such order. 
‘‘(7) No registered municipal financial adviser shall 
act as such unless it meets such standards of operational 
capability and such municipal financial adviser and all 
natural persons associated with such municipal financial 
adviser meet such standards of training, experience, com-
petence, and such other qualifications as the Commission 
finds necessary or appropriate in the public interest or for 
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the protection of investors. The Commission shall establish 
such standards by rules and regulations, which may— 
‘‘(A) specify that all or any portion of such 
standards shall be applicable to any class of munic-
ipal financial advisers and persons associated with 
municipal financial advisers; 
‘‘(B) require persons in any such class to pass 
tests prescribed in accordance with such rules and 
regulations, which tests shall, with respect to any 
class of partners, officers, or supervisory employees 
(which latter term may be defined by the Commis-
sion’s rules and regulations) engaged in the manage-
ment of the municipal financial adviser, include 
questions relating to bookkeeping, accounting, super-
vision of employees, maintenance of records, and 
other appropriate matters; and 
‘‘(C) provide that persons in any such class 
other than municipal financial advisers and partners, 
officers, and supervisory employees of municipal fi-
nancial advisers, may be qualified solely on the basis 
of compliance with such standards of training and 
such other qualifications as the Commission finds 
appropriate. 
The Commission, by rule, may prescribe reasonable fees 
and charges to defray its costs in carrying out this para-
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graph, including, but not limited to, fees for any test ad-
ministered by it or under its direction. 
‘‘(c)(1)(A) No municipal financial adviser shall make 
use of the mails or any means or instrumentality of inter-
state commerce in connection with which such municipal 
financial adviser engages in any fraudulent, deceptive, or 
manipulative act or practice or violates such rules and reg-
ulations regarding conflicts of interest or fair practices, 
including but not limited to rules and regulations related 
to political contributions, as the Commission shall pre-
scribe in the public interest or for the protection of inves-
tors or to maintain fair and orderly markets. 
‘‘(B) The Commission shall, for the purposes of this 
paragraph as the Commission finds necessary or appro-
priate in the public interest or for the protection of inves-
tors, by rules and regulations define, and prescribe means 
reasonably designed to prevent, such acts and practices 
as are fraudulent, deceptive, or manipulative. 
‘‘(2) If the Commission finds, after notice and oppor-
tunity for a hearing, that any person subject to the provi-
sions of this section or any rule or regulation thereunder 
has failed to comply with any such provision, rule, or regu-
lation in any material respect, the Commission may pub-
lish its findings and issue an order requiring such person, 
and any person who was a cause of the failure to comply 
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