MSRB Request for Comment on Bondholder Consent Proposal

On February 7, the MSRB requested comments on a draft proposal on the circumstances under which municipal bond underwriters would violate their duty to deal fairly by consenting to certain amendments to bond authorizing documents. The proposal would describe circumstances where an underwriter’s consent to an amendment would violate Rule G-17’s requirements that brokers, dealers, and municipal securities dealers deal fairly with all persons in the conduct of their municipal securities activities. Comments must be submitted by March 6. MSRB Release. Draft Proposal.