Rules

MSRB Rules

The MSRB establishes investor protection rules securities firms and banks must follow when advising investors and engaging in municipal securities transactions.

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Rule G-1 Separately Identifiable Department or Division of a Bank
Rule G-2 Standards of Professional Qualification
Rule G-3 Classification of Principals and Representatives; Numerical Requirements; Testing; Continuing Education Requirements
Rule G-4 Statutory Disqualifications
Rule G-5 Disciplinary Actions by Appropriate Regulatory Agencies; Remedial Notices by Registered Securities Associations
Rule G-6 Fidelity Bonding Requirements
Rule G-7 Information Concerning Associated Persons
Rule G-8 Books and Records to be Made by Brokers, Dealers and Municipal Securities Dealers
Rule G-9 Preservation of Records
Rule G-10 Delivery of Investor Brochure
Rule G-11 Primary Offering Practices
Rule G-12 Uniform Practice
Rule G-13 Quotations Relating to Municipal Securities
Rule G-14 Reports of Sales or Purchases
Rule G-15 Confirmation, Clearance, Settlement and Other Uniform Practice Requirements with Respect to Transactions with Customers
Rule G-16 Periodic Compliance Examination
Rule G-17 Conduct of Municipal Securities and Municipal Advisory Activities
Rule G-18 Execution of Transactions
Rule G-19 Suitability of Recommendations and Transactions; Discretionary Accounts
Rule G-20 Gifts, Gratuities and Non-Cash Compensation
Rule G-21 Advertising
Rule G-22 Control Relationships
Rule G-23 Activities of Financial Advisors
Rule G-24 Use of Ownership Information Obtained in Fiduciary or Agency Capacity
Rule G-25 Improper Use of Assets
Rule G-26 Customer Account Transfers
Rule G-27 Supervision
Rule G-28 Transactions with Employees and Partners of Other Municipal Securities Professionals
Rule G-29 Availability of Board Rules
Rule G-30 Prices and Commissions
Rule G-31 Reciprocal Dealings with Municipal Securities Investment Companies
Rule G-32 Disclosures In Connection With Primary Offerings
Rule G-33 Calculations
Rule G-34 CUSIP Numbers, New Issue, and Market Information Requirements
Rule G-35 Arbitration
Rule G-36 Reserved
Former Rule G-36 Former Rule G-36
Rule G-37 Political Contributions and Prohibitions on Municipal Securities Business
Rule G-38 Solicitation of Municipal Securities Business
Rule G-39 Telemarketing
Rule G-40 Electronic Mail Contacts
Rule G-41 Anti-Money Laundering Compliance Program

MSRB Rulemaking Program
The MSRB maintains a body of rules designed to prevent fraud and manipulation in the market, to promote the mechanisms of a free and open market, to promote just and equitable principles of trade and to serve various other specific purposes described in the Securities Exchange Act. Timely and well-informed rulemaking and interpretive guidance responsive to changing market conditions are critical to the MSRB’s mission to protect investors. The MSRB frequently publishes rule interpretations providing guidance on the application of MSRB rules in the context of typical situations that may occur in the market.

The Dodd-Frank Wall Street Reform and Consumer Protection Act granted the MSRB regulatory authority over municipal advisors. The MSRB is adopting a comprehensive set of rules for municipal advisors. Read MSRB rules that apply to municipal advisors.

General Rules
The MSRB's General, or "G", rules create a number of specific responsibilities for dealers effecting municipal securities transactions. Read a summary of MSRB's G rules here. The MSRB's G rules include requirements to ensure that the material facts about a proposed transaction are disclosed to investors, to ensure that recommended transactions are suitable for investors, and to ensure that transaction prices are fair and reasonable. MSRB rules establish specific professional qualification standards and continuing education requirements for dealer personnel. There are specific rules for sales and trading of municipal fund securities.

Several rules address dealer behavior with respect to potential conflicts of interest that may arise in the underwriting, sales and trading of municipal securities. These include rules relating to political contributions made to officials of issuers of municipal securities, gifts or gratuities made to persons with which the dealer is engaging in business, and dealers acting as financial advisors to municipal securities issuers. Other MSRB rules specify disclosure and other responsibilities of dealers underwriting municipal securities.

The MSRB also maintains rules standardizing confirmation, clearance, and settlement of municipal securities transactions, recordkeeping rules, and other uniform practice requirements for dealer operations in the market.

Administrative Rules
Administrative, or "A" rules, set forth the structure, authority and membership of the MSRB, and detail dealer assessments and fees.

Definitional Rules
Definitional, or "D" rules, provide definitions for terms used in MSRB rules.