MSRB Proposed Rule on Fiduciary Duty for Municipal Advisors

On August 23, the MSRB filed with the SEC proposed Rule G-36 and interpretive guidance on the fiduciary duty owed by municipal advisors to state and local government as well as other municipal entity clients. Under the proposed rule and related guidance, municipal advisors would be required to: (i) act in the municipal entity’s best interest; (ii) provide written disclosure of certain conflicts of interest; and (iii) receive written consent for any such conflicts from authorized government officials. The proposed rule is expected to take effect on the effective date of the SEC’s definition of the term “municipal advisor” under the Exchange Act, or at a later date as approved by the SEC. MSRB Release.