On May 25, MSRB proposed Rule G-44 requiring municipal advisors to adopt internal supervisory systems to ensure compliance with applicable MSRB and SEC rules. The proposed rule would establish minimum requirements for such systems, including the manner in which municipal advisory activities will be monitored and supervised. Comments must be submitted by June 24. MSRB Release. Proposed Rule.
MSRB
MSRB Transparency Standard for Municipal Variable Rate Securities
On May 16, the MSRB announced a new transparency standard for municipal variable rate securities. Under this standard, information will be made publicly available on EMMA that will allow investors to assess the level of demand, liquidity provisions, and auction procedures for such securities. MSRB Release.
MSRB Amendments to SHORT System Subscription Service
On April 6, the SEC approved the MSRB proposed rule consisting of amendments to the MSRB’s Short-term Obligation Rate Transparency subscription service. The effective date of the amendments will be May 16 and will coincide with the effective date of changes to MSRB Rule G-34(c). MSRB Notice.
MSRB Issuer Voluntary Disclosure
On March 23, the MSRB announced that, beginning May 23, it will accept from municipal issuers voluntary submissions of preliminary official statements and other related pre-sale documents, official statements and advance refunding documents, information relating to the preparation and submission of audited financial statements and hyperlinks to other disclosure information available from the issuer. Disclosures submitted to the MSRB will be made available on the EMMA web portal. MSRB Release.
MSRB Request for Comment on Broker’s Brokers Rule
On February 24, the MSRB requested comments on a draft rule and amendments that would govern the activities of municipal securities dealers that principally act as intermediaries on transactions between dealers (known as broker’s brokers). The proposed rule would define and establish the basic duties of a broker’s broker. Comments must be submitted by April 21. MSRB Release. MSRB Request for Comment.
MSRB Municipal Advisor Rules
On February 14, the MSRB (i) filed with the SEC a proposal to require municipal advisors to notify the MSRB when the advisor ceases to engage in municipal advisory activities and (ii) issued proposals to establish a new municipal advisor fiduciary rule, and provide further guidance to municipal advisors, broker-dealers and banks on fair dealing obligations. Proposed Notification Rule Release. Proposed Fiduciary Duty Rule and Fair Dealing Obligations Release.
MSRB Proposal to Prohibit Dealers from Acting as Financial Advisors and Underwriters
On February 9, the MSRB filed with the SEC a proposed rule change to prohibit a broker, dealer, or municipal securities dealer from acting both as a financial advisor to an issuer of municipal securities and as an underwriter for the same new issue of municipal securities. MSRB Release. MSRB Notice.
MSRB Opens Municipal Advisor Registration System
On November 15, MSRB opened its registration system for municipal advisors in response to the Dodd-Frank Act. Municipal advisor firms must register with the MSRB by December 31 in order to engage in municipal advisory activities. MSRB Release.