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The MSRB recently published its 2016 Compliance Advisory for Municipal Advisors as part of an ongoing effort to assist municipal advisors with understanding and implementing new regulations. The advisory highlights compliance risks and provides an overview of currently effective rules, examples of conduct violations and factors municipal advisors should consider when evaluating their compliance programs. Read the 2016 Compliance Advisory for Municipal Advisors. |
The MSRB has received approval from the Securities and Exchange Commission (SEC) to amend MSRB Rule G-20 to address conflicts of interest that may arise from gift-giving in connection with municipal advisory activities. Amended MSRB Rule G-20 restricts the gifts, gratuities and non-cash compensation given by municipal advisors to issuers in their professional capacities. The new regulation, which is effective on May 6, 2016, represents another important milestone in the development of a comprehensive regulatory framework for municipal advisors in accordance with the MSRB's expanded mandate under the Dodd-Frank Wall Street Reform and Consumer Protection Act. View the regulatory notice. View the new rule.
The MSRB recently filed an amendment to its proposed conduct rule for municipal advisors with the SEC. Proposed MSRB Rule G-42 would establish core standards of conduct and duties of non-solicitor municipal advisors when engaging in municipal advisory activities, including their fiduciary duty to municipal entity clients.
In response to the concerns of the commenters, the recent amendment adds a narrow exception to the specified prohibition in the proposed rule of certain principal transactions with municipal entity clients, and also makes minor, technical amendments. The exception generally would cover transactions in particular types of fixed income securities where the municipal advisor follows a process to make disclosure and obtain client consent. View the SEC filing to amend the principal transaction ban in proposed Rule G-42.
Recent enhancements to the MSRB's website make it easier to follow the progress of evolving regulations for municipal advisors.
New features include:
- Improved access to information at each stage of the rulemaking process
- Icons to visually highlight the current status of rules in development
- Enhanced navigation tools, including next and previous buttons to click through the online MSRB Rule Book
- Convenient listing of most recent filings to the SEC and related documents
Explore the new Regulation section at MSRB.org.
The MSRB's Municipal Advisor Representative Qualification Exam (Series 50) will be administered as a pilot exam January 15, 2016 – February 15, 2016. Participation is voluntary. Enroll using the Financial Industry Regulatory Authority’s (FINRA) Form U10 by January 14, 2016.
For more information regarding the Series 50 pilot exam, see the MSRB’s Regulatory Notice 2015-15.
 As the calendar year comes to an end, many municipal securities issuers may be thinking about their upcoming annual disclosure obligations. The MSRB offers a
free tool to help issuers keep
track of due dates for recurring financial disclosures. Municipal advisors can remind issuer clients to schedule a
free email reminder from Electronic Municipal Market Access (EMMA®) website to
alert them when the deadline is
approaching for an annual or quarterly financial disclosure filing.
Read more about financial disclosure email reminders.
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