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Self-Regulation and the Municipal Market
 Oversight of the municipal market has been grounded
in the concept of self-regulation for over 40 years. Government provides strong
oversight, and market practitioners contribute expert insight into the
practical realities of implementing regulatory objectives. Our self-regulatory
model has supported the growth of a $3.8 trillion capital market that has the
confidence of investors, issuers and market professionals. As part of the
MSRB’s long-term strategic vision, we plan to continue to leverage our unique
perspective and expertise to advance the integrity of the municipal market, while
maintaining our commitment to continuous self-assessment and improvement. This
work will take different forms, with the common goal of providing appropriate regulations,
promoting market transparency, and offering education and outreach to ensure a
fair and efficient municipal market for all. Below are some recent examples of
this work.
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 Last month, we published a report summarizing the history of
self-regulation in the U.S. capital markets and detailing the advantages of the
MSRB’s distinctive SRO model. Read Self-Regulation and the Municipal Securities
Market here.
In January, MSRB Chair Lucy Hooper published commentary in The Bond Buyer that explores the MSRB’s unique
approach to safeguarding the municipal securities market. The piece highlights
four key advantages to the MSRB’s SRO model and emphasizes our commitment to
corporate transparency, stakeholder engagement and continuous improvement. Read the
commentary here.
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 As the municipal market’s SRO, the MSRB publishes an
annual report highlighting the previous year’s initiatives in support of a fair
and efficient market, as well as information about the organization’s financial
position. Read the MSRB’s 2017
Annual Report, which emphasizes our commitment to an inclusive,
transparent approach to safeguarding market integrity.
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MSRB
Board Holds Quarterly Meeting
During its quarterly meeting at the end of January,
the MSRB Board of Directors discussed industry implementation of the mark-up
disclosure rule, facilitating compliance with MSRB rules and other measures
aimed at regulatory efficiency. The Board also discussed the continued adoption
by both municipal securities dealers and municipal advisors of new market
regulations and agreed that the timing of new requests for comment will be
carefully calibrated to allow commenters to provide meaningful feedback as they
accommodate new regulatory requirements. Read the
full Board meeting summary here.
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Board
Member Applications Due by February 16, 2018
The MSRB annually seeks applicants to fill open
positions on its Board of Directors and is accepting applications through
February 16, 2018. The 21-member Board sets the strategic direction of the
organization, makes policy decisions, authorizes rulemaking and market
transparency initiatives, and oversees MSRB operations. The MSRB is currently seeking
applicants to fill two public and three regulated-entity positions, including
applicants with substantial experience in municipal securities retail sales, and
trading desk and syndicate operations. The MSRB is also interested in retail
and institutional investor applicants, particularly those with expertise in
separately managed municipal accounts and market structure issues, and
applicants with a securities law or legal background. Interested candidates
must submit an application on the MSRB Board
of Directors Application Portal. MSRB Rule
A-3 outlines requirements for all applicants to
the Board, including specific eligibility requirements to serve as a public or
regulated-entity Board member.
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Renee Boicourt: At-a-Glance
A regular feature on members of the MSRB Board
of Directors
 As one of
three non-dealer municipal advisor representatives to the Board, Renee Boicourt
knows that success in the municipal market is all about collaboration. Through
her 30 years of work in the industry advising municipal bond issuers, Boicourt
has observed that the public finance sector is at its peak when all parties
have a place at the table. Now Managing Director at Lamont Financial Services
Corporation, Boicourt sees the same dynamic at work on the MSRB Board of
Directors.
She says
that just as all parties need to work together for a successful transaction,
successful oversight of the municipal securities market requires the collective
input of the different participants. “The Board does well by having diversity
of disciplines. You’ve got expertise from a lot of different angles,” she says.
“The regulated members of the Board take the time to understand and think through the
potential second-order effects of proposed regulations on market dynamics and the public members bring other points of view. The right people are at
the table.”
As one of
many Board members who has dedicated their professional life to public finance,
Boicourt appreciates the common purpose that draws many to the municipal
securities market. “I think the public finance industry has this self-selection
process of who goes into the profession,” she says. “It draws in people who
care about public policy. You’re helping, advising and lending into policy
settings, essentially helping clients solve policy problems. It’s very
rewarding.”
Boicourt is
among those municipal financial professionals who until 2010, were not
federally regulated. The MSRB has since established rules of professional
conduct and qualification requirements for municipal advisors. She says that
while regulation sometimes is viewed as a burden, it is essential for
protecting the market.
“Sometimes
you hear that nobody wants to be regulated, but I don’t think that is true.
What we want is to be self-regulated so that the bad actors don’t destroy the
business and hurt the clients and the market,” she says. “In that sense, we do
want to be regulated, and we want to be regulated by a technically
well-informed body like the MSRB.”
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MuniEdPro® is the MSRB’s suite of interactive,
online courses designed specifically for municipal market participants. The
courses provide up-to-date content relevant to municipal market activities and
MSRB regulations. On February 8, 2018, the MSRB will release a new course that supports
understanding of upcoming mark-up
disclosure requirements under MSRB Rule G-15 and the determination of
prevailing market price under MSRB Rule G-30. The course, Mark-up Disclosure and Prevailing Market Price for Municipal Securities, will cover the fundamental aspects of the rules and allow the
learner to understand the application of the rules to examples of municipal
bond transactions. To promote understanding of the requirements, the MSRB will make the course available at no cost through May 14, 2018, when the new requirements are scheduled to take effect. If you do not have a MuniEdPro
account, create one to enroll in the course.
For more information
about MuniEdPro® or to inquire about subscription options, contact Ritta
McLaughlin at rmclaughlin@msrb.org or 202-838-1306.
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Upcoming Events
Join the MSRB at one or more of our Town Hall meetings that will give
municipal market participants the opportunity to discuss self-regulation of the
municipal securities market. Each meeting will be exclusively in person and is
intended to support the municipal market community by creating a forum to
communicate concerns and capture ideas to inform the MSRB's future activity.
All are welcome and there is no cost to attend. Details and registration
information for each Town Hall meeting is listed below.
 MSRB Arizona Town Hall
Hosted in coordination with the National Association of Bond Lawyers’ 16th
Annual Tax & Securities Law Institute
Wednesday, February 21, 2018
4:00 p.m. – 6:00 p.m. MT
JW Marriott Desert Ridge, Stonegrill
5350 E. Marriott Drive
Phoenix, AZ 85054
Register to attend.
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 MSRB California Town Hall
Hosted in coordination with the National Association of Municipal
Advisors
Thursday, February 22, 2018
4:00 p.m. – 6:00 p.m. PT
Newport Beach Marriott Hotel
900 Newport Center Drive
Newport Beach, CA 92660
Register to attend.
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 MSRB Chicago Town Hall
Hosted in coordination
with the Municipal Bond Club of Chicago
Thursday, May 17,
2018
4:00 p.m. – 6:00 p.m. CT
JW Marriott
Chicago
151 West Adams
Street
Chicago, IL 60603
Register
to attend.
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 Compliance Workshop on MSRB Rule G-42:
Documenting Your Relationships and Making Disclosures
March 9, 2018 12:30 – 1:30 p.m. ET
Register to attend the second in a series of virtual compliance workshops designed for regulated entities. Join MSRB staff for an in-depth discussion about key provisions of MSRB Rule G-42, on duties of non-solicitor municipal advisors, related to relationship documentation and making disclosures. This workshop will follow a question-and-answer format based on questions and suggestions from regulated entities and other stakeholders.
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Rules and Guidance Roundup
Visit the Rules and Guidance page of msrb.org to stay up-to-date with the latest requests for comment, proposed rule changes, rule approval notices and market advisories.
Compliance Resources
Visit the online Compliance Center for resources and information to help regulated entities understand and comply with MSRB rules.
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