Levitt Praises Independent Financial Advisors for Adopting Voluntary Pay-to-Play Ban

Securities and Exchange
Commission Chairman Arthur Levitt today praised a group of
leading independent financial advisers for agreeing to a
voluntary ban on pay-to-play practices in the municipal
securities markets.

     Chairman Levitt said, “I congratulate these individuals on
their commitment to the integrity of the municipal securities
market.  Pay-to-play eats away at confidence in our markets,
causing investors to ask of professionals who bring bonds to
market: are they chosen because of their competence, or their
connections?  The more market professionals refuse to pay to
play, the closer we are to ending this practice.”

     In agreeing to the ban, independent financial advisors join
municipal bond dealers and brokers who are prohibited from
engaging in pay-to-play.  Currently, the Commission is working
closely with the American Bar Association and state and local bar
associations around the country to adopt pay-to-play bans for
bond counsel.  The independent financial advisor ban on pay-to-
play is included in a Statement of Initiative Regarding Political
Contributions to State and Local Officials/Candidates.  The firms
organizing the Statement of Initiative include: Bartle Wells
Associates, Evensen Dodge, Inc., Government Finance Associates,
Inc., Munistat Services, Inc., P.G. Corbin & Company, Inc.,
Public Financial Management Inc. and Public Resources Advisory
Group.  In addition, the initiative has been adopted by members
of the National Association of Independent Financial Advisors.

     The voluntary ban, which goes into effect immediately, will
be self-policing.

     The firms signing the Statement of Initiative represent a
cross section of financial adviser firms including four of the
top seven firms in the Bond Buyer’s end of year rankings for
1998.

     As independent financial advisorsO activities generally do
not require their registration as brokers, dealers or municipal
securities dealers, they are not subject to the ban on pay-to-
play under Municipal Securities Rulemaking Board Rule G-37.