MUNICIPAL FINANCE SERVICES, INC. (“MFSOK’’)
MUNICIPAL ADVISORY SERVICES DISCLOSURES
Pursuant to the Municipal Securities Rulemaking Board (“MSRB”) Rule G-42, on Duties of Non-Solicitor Municipal Advisors, Municipal Advisors are required to make certain written disclosures to prospective clients regarding municipal advisory activities as required by the Municipal Securities Rulemaking Board (“MSRB”) Rule prior to or at the time of providing advice. Municipal Finance Services, Inc. (“MFSOK”) and its associated persons are providing you with this Disclosure.
- Conflict of Interest Statement
MFSOK serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of another MFSOK client. For example, MFSOK serves as municipal advisor to other clients and, in such cases, owes a regulatory duty to such other clients just as it will to your entity, if hired. These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, MFSOK could potentially face a conflict of interest arising from these competing client interests. MFSOK fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with its clients.
From time to time, MFSOK provides municipal advisory services in connection with the issuance of a bond(s), or other forms of obligations and MFSOK may receive compensation for the services provided that is contingent upon the successful closing of a transaction or is based on the size of a transaction. Consistent with certain regulatory requirements, MFSOK hereby discloses that such contingent and/or transactional compensation present a conflict of interest regarding MFSOK’s ability to provide unbiased advice to enter into such transaction. The contingent fee arrangement creates an incentive for MFSOK to recommend unnecessary financings or financings that are disadvantageous to the client, or to advise client to increase the size of the issue. This viewed conflict of interest will not impair MFSOK’s ability to render unbiased and competent advice or to fulfill its fiduciary duty. The fee paid to MFSOK increases the cost of borrowing to the Client. The increased cost occurs from compensating MFSOK for municipal advisory services provided.
If MFSOK becomes aware of any other actual or potential conflict of interest not mentioned above during an agreement, MFSOK will promptly provide the Client a supplement written disclosure with sufficient details of the change, if any, which will allow the Client to evaluate the situation.
- Legal Events and Disciplinary History
A regulatory disclosure action has been made on MFSOK’s Form MA and on Form MA-I for two of MFSOK’s municipal advisory personnel relating to a 2017 U.S. Securities and Exchange Commission (“SEC”) order. The details of which are available in Item 9; C (2), C (4), C (5) and the corresponding regulatory action DRP section on Form MA and Item 6: C (2), C (4), C (5), C (6) and the corresponding regulatory action DRP section on Form MA-I for both Rick A. Smith and Jon Wolff. In addition, the Oklahoma Department of Securities adopted the above proceedings which are identified in Item 9; D (2), D (4) and the corresponding regulatory action DRP section on Form MA.
The Client may electronically access MFSOK’s most recent Form MA and each most recent Form MA-I filed with the Commission at the following website:
There has been no change to any legal or disciplinary event that has been disclosed on MFSOK’s SEC registration for MA filings since December 18, 2017.
MUNICIPAL FINANCE SERVICES, INC.
P: 405.340.1727 3933
E. Covell Road, Edmond, OK 73034-6909