Marking a Decade of Municipal Advisor Regulation
by Ernesto Lanza, Chief Regulatory and Policy Officer
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Ten years ago this month, the SEC adopted its final municipal advisor registration rule, which represented the critical starting point for the MSRB to begin developing rules of the road for this new category of market professionals. The establishment of a regulatory framework gave market professionals the answer to the question of what activity makes a firm a “municipal advisor,” and in turn requires registration with regulators and compliance with federal securities laws, including MSRB rules to protect municipal advisors’ clients and to promote the fair and efficient operation of the municipal market. In the decade since the SEC’s adoption of the registration rule, the MSRB has implemented a body of rules governing municipal advisors’ professional qualifications and core standards of conduct, and created a library of compliance resources to support municipal advisors’ understanding of and compliance with these obligations. The newest additions to the MSRB’s compliance library for municipal advisors include: |
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Ernesto Lanza |
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Coming soon are three compliance resources on professional qualification requirements to further understanding of the newly adopted criteria-based exemption from requalification, under MSRB Rule G‑3(h), and a books and records compliance resource for municipal advisors.
Looking ahead, the MSRB remains focused on ensuring all professionals active in the municipal market are well aware of the associated rules that govern their conduct and the resources available to support compliance.
We encourage registered municipal advisors and other market professionals to reach out to us with any questions or concerns about market practices, rules or compliance challenges. You can reach our team at compliance@msrb.org or by calling MSRB Support at 202-838-1330.
SEC, MSRB, FINRA to Hold Virtual Compliance Outreach Program
The Securities and Exchange Commission (SEC), Municipal Securities Rulemaking Board (MSRB), and Financial Industry Regulatory Authority (FINRA) today announced that registration is open for a virtual Compliance Outreach Program for municipal market professionals. The free webcast is open to the public and will take place on Thursday, December 7, 2023, from 10:30 a.m. to 4:30 p.m. ET.
The program will provide municipal market participants an opportunity to hear from SEC, MSRB and FINRA staff on timely regulatory and compliance matters for municipal advisors and dealers.
Read the press release.
Register for the program.
MSRB Seeks Comment on Streamlining Interpretive Guidance Related to Interdealer Confirmations
The MSRB yesterday issued a Request for Comment (RFC) on draft amendments to MSRB Rule G-12, on uniform practice, to codify, retire and reorganize approximately 40 pieces of interpretive guidance related to interdealer confirmations, some of which date back more than 40 years. With this proposal, the MSRB will have advanced efforts to codify or retire approximately 20% of its body of interpretive guidance since launching the modernization initiative in February 2021. Comments should be submitted no later than December 15, 2023.
Read the press release.
Read the request for comment.
Compliance Calendar
Dealers and municipal advisors should note the following key compliance dates and deadlines.
October 1, 2023 - First Day to File G-37 for Quarter Ending September 30
October 12, 2023 - Compliance Date for Amendments to MSRB Rule G-3 Establishing a Criteria-Based Exemption from Requalification by Reexamination
October 31, 2023 - Last Day to File G-37 for quarter ending September 30
October 31, 2023 - Last Day to Make Timely Payment for Annual Registration Fee Under Rule A-12
