MSRB Invites Input on Potential Regulatory Approach to Improving Transparency of Bank Loans

In its latest effort to address transparency for municipal securities investors, the MSRB is seeking public comment on a concept proposal to require municipal advisors to disclose information regarding the direct purchase and bank loan transactions of their municipal entity clients. For several years the MSRB has been encouraging state and local governments to voluntarily disclose bank loan financings and other similar obligations on its Electronic Municipal Market Access (EMMA®) website. However, very few municipalities have publicly provided such information. The MSRB’s exploration of a potential disclosure requirement is intended to ensure bondholders have access to important information about the existence and material terms of direct purchases and bank loan financings that may have an impact on their bonds. Comments on the MSRB’s concept proposal should be submitted no later than May 27, 2016.

The MSRB also recently issued a joint regulatory notice with the Financial Industry Regulatory Authority (FINRA) to remind municipal securities dealers of their responsibilities to assess whether bank loans may in fact be municipal securities and thus subject to MSRB and FINRA rules and federal securities laws. And on April 25, 2016, the MSRB provided the Governmental Accounting Standards Board (GASB) with information to support the GASB's research on debt disclosures, including direct borrowing.

Read more about the MSRB’s advocacy for greater disclosure of bank loans and other debt-like obligations of municipal securities issuers.

Upcoming Events

MSRB Webinar: What to Expect From Your Municipal Advisor May 26, 2016 12:00 p.m. - 1:00 p.m. ET Issuers of municipal securities can attend this free educational webinar to learn about the new rules for municipal advisors and to hear about how their relationship with financial professionals, hired as part of the deal team, may change as the municipal advisor rules go into effect. Register for the webinar.  MSRB Webinar: Application of MSRB Rule G-37 on Political Contributions and Prohibitions on Municipal Advisory Business to Municipal Advisors, and Related Amendments to MSRB Rules G-8 and G-9 July 07, 2016 3:00 p.m. - 4:00 p.m. ET During this free webinar, MSRB staff will review the new key provisions of MSRB Rule G-37 that extend requirements to municipal advisors related to their political contributions and the provision of municipal advisory business. Municipal advisors are subject to amended Rule G-37, Rules G-8 and G-9 on August 17, 2016. Register for the webinar.

EMMA® Tip: Market Statistics

Use EMMA’s market statistics for help understanding trends and patterns in the municipal market. The MSRB collects data on new issuance, trading activity and continuing disclosure volume, and provides interactive tools on EMMA for users to generate charts and graphs to assist in visualizing these statistics.

Recent Press Releases

April 25, 2016: MSRB to Provide Municipal Market Trading Data to Academics Through Wharton Research Service   April 18, 2016: MSRB Holds Quarterly Board Meeting April 7, 2016: MSRB Seeks Comment on Clarifying Exceptions to Minimum Denomination Rule April 5, 2016: Purchasers of ABLE Accounts May Now Be Protected by MSRB Investor Protection Rules March 28, 2016: MSRB Seeks Comment on Potential Rulemaking to Improve Transparency of Direct Purchases and Bank Loans

Regulatory Round Up

April 12, 2016: Municipal Fund Securities - Interpretation Relating to the Sales of Interests in ABLE Programs in the Primary Market

April 7, 2016: Request for Comment on Draft Amendments to MSRB Rule G-15(f) on Minimum Denominations

April 4, 2016: Direct Purchases and Bank Loans as Alternatives to Public Financing in the Municipal Securities Market

March 28, 2016: Request for Comment on a Concept Proposal to Improve Disclosure of Direct Purchases and Bank Loans