Gift-Giving by Municipal Advisors to be Curbed Beginning in May 2016

The Municipal Securities Rulemaking Board recently received approval from the Securities and Exchange Commission to limit the size and nature of gifts given by municipal advisors in their professional capacity advising state and local governments. The new restrictions, which go into effect May 6, 2016, seek to address conflicts of interest that may arise from gift-giving in connection with municipal advisory activities. The new regulations largely apply existing MSRB regulations on gifts and related recordkeeping for municipal securities dealers under MSRB Rule G-20 to municipal advisors.

Changes to Rule G-20 in May also include a new explicit prohibition for both dealers and municipal advisors from receiving reimbursement of certain entertainment expenses from the proceeds of an offering of municipal securities. Read more.

The MSRB plans to host a webinar on the amendments to Rule G-20 on Thursday March 24, 2016 at 3:00 p.m. ET. Register for the webinar.

Recent Webinars

Draft Rule Amendments MSRB Rule G-15 on Confirmation Disclosure The MSRB hosted a webinar to review the request for comment on draft amendments to MSRB Rule G-15 to require municipal securities dealers to disclose the amount of the mark-up on retail customer confirmations for specified principal transactions. View the presentation.

Attention Municipal Advisors: Enroll Today for the Series 50 Pilot Exam

The Municipal Advisor Representative Qualification Exam (Series 50) will be administered as a pilot exam January 15, 2016 – February 15, 2016. Enroll using the Financial Industry Regulatory Authority’s (FINRA) Form U10 by January 14, 2016 to participate.   For more information regarding the Series 50 pilot exam, see the MSRB’s Regulatory Notice 2015-15.  Sign up for email updates about the administration of the pilot exam.  Access resources and information about the exam.

Recent Press Releases

November 10, 2015: MSRB Requests Comment on Shortening the Settlement Cycle for Municipal Securities November 9, 2015: MSRB to Implement Gifts Rule for Municipal Advisors   November 2, 2015: MSRB Mandates Regulated Entity Participation in Business Continuity Testing   October 26, 2015: MSRB Holds Quarterly Board Meeting

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Regulatory Roundup

November 10, 2015: Request for Comment on Changes to MSRB Rules to Facilitate Shortening the Securities Settlement Cycle

November 9, 2015: SEC Approves Amendments to MSRB Rule G-20 on Gifts, Gratuities and Non-Cash Compensation and Related Amendments to MSRB Rule G-8 

November 9, 2015: Proposed Rule Change Consisting of Proposed New Rule G-42, on Duties of Non-Solicitor Municipal Advisors, and Proposed Amendments to Rule G-8, on Books and Records to be Made by Brokers, Dealers, Municipal Securities Dealers, and Municipal Advisors

• Amendment No. 2 to Proposed MSRB Rule G-42 (November 9, 2015)
• MSRB Letter to SEC about Amendment No. 2 (November 9, 2015)
  
  

November 6, 2015: Proposed Rule Change Consisting of Amendments to MSRB Rule G-20, on Gifts, Gratuities and Non-Cash Compensation, and MSRB Rule G-8, on Books and Records to be Made by Brokers, Dealers, Municipal Securities Dealers, and Municipal Advisors, and the Deletion of Prior Interpretive Guidance

• SEC Approval Order (November 6, 2015)

November 3, 2015: MSRB Adopts Rule Requiring Participation in Business Continuity and Disaster Recovery Testing

November 2, 2015: Proposed Rule Change to Adopt New MSRB Rule A-18, on Mandatory Participation in Business Continuity and Disaster Recovery Testing 

October 20, 2015: MSRB Extends Comment Deadline on Confirmation Disclosure Proposal

October 20, 2015: Proposed Rule Change to Provide a Web-Based Delivery Method for Completing the Regulatory Element of the Continuing Education Requirements Pursuant to Rule G-3(i)(i)

• SEC Approval Order (October 14, 2015)
• Federal Register Notice of Immediately Effective Rule Change (October 20, 2015)