MSRB Municipal Advisor Review - Summer 2016

Summer 16

Upcoming Events

All MSRB webinars are free and open to all, however registration is required.

MSRB Webinar: Application of MSRB Rule G-37 on Political Contributions and Prohibitions on Municipal Advisory Business to Municipal Advisors 

Thursday, July 7, 2016
3:00 p.m. - 4:00 p.m. ET

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 engagement in municipal advisory business. Register

Implications for Supervisory Procedures of Newly Effective Rules

With several MSRB rules for municipal advisors effective in 2016, the MSRB reminds municipal advisors to make any necessary modifications to their written supervisory procedures and compliance policies.

For example, provisions for municipal advisors of MSRB Rule G-20 related to gift-giving became effective on May 6, 2016. Accordingly, a municipal advisor’s written supervisory procedures should now include procedures reasonably designed to avoid improprieties and conflicts of interest that may arise when regulated entities or their associated persons give gifts or gratuities in relation to the municipal advisory activities of the recipients’ employers. Written supervisory procedures should include a description of how the designated municipal advisor principal(s) will monitor and review the municipal advisory activities of associated persons for compliance with Rule G-20. 

Since 2015, municipal advisors have been required under MSRB Rule G-44 to have supervisory procedures and compliance policies “reasonably designed to achieve compliance with all applicable rules” and since April 23 2016, to certify annually “processes to establish, maintain, review, test and modify written compliance policies and supervisory procedures.”   

New Rules Coming this Summer

Core Rules and Effective Dates for Municipal Advisors

Duties of Non-Solicitor Municipal Advisors 

Rule G-42 to establish the core standards of conduct and duties of municipal advisors when engaging in municipal advisory activities 
Effective June 23, 2016

Political Contributions and Prohibitions on Municipal Securities Business and Municipal Advisory Business 

Amended Rule G-37 to extend the core standards under Rule G-37 to municipal advisors, their political contributions and the provision of municipal advisory business
Effective August 17, 2016

Books and Records to be Made by Brokers, Dealers, and Municipal Securities Dealers and Municipal Advisors

Amended Rule G-8 to establish recordkeeping requirements that apply when a municipal advisor makes a suitability determination or reviews the recommendation of another party
Effective June 23, 2016

Additional amendments to Rule G-8 to impose the same recordkeeping requirements related to political contributions by municipal advisors and their associated persons that apply to dealers and their associated persons
Effective August 17, 2016

Preservation of Records 

Amended Rule G-9 to require municipal advisors to preserve for six years the records required to be made concerning political contributions
Effective August 17, 2016


Permanent Series 50 Exam Set for September 12, 2016

On May 31, 2016, the MSRB notified municipal advisors that the permanent Municipal Advisor Representative Qualification Examination (Series 50) will be available beginning September 12, 2016. As provided for under MSRB Rule G-3, municipal advisor representatives are required to take and pass the Series 50 in order to engage in municipal advisory activities. The score required to pass the Series 50 exam is 71 percent, and municipal advisors have until September 12, 2017 to take and pass the test. 


Economic Calendar Coming Soon


Beginning in late June 2016, EMMA users will have free, convenient access to an economic calendar with dates and descriptions of key macroeconomic developments that could have an impact on the trading and issuance of municipal securities. The calendar will highlight federal data releases, events and other indicators of the health of the overall economy, such as labor statistics and interest rate decisions. Municipal securities issuers, investors and their financial professionals may want to consult the economic calendar when assessing market activity. The MSRB is adding the calendar to the tools and resources currently available on EMMA to help investors and issuers make decisions that are right for them.