Contact: Lynnette Kelly Hotchkiss, Executive Director
(703) 797-6600
lhotchkiss@msrb.org
Contact: Ernesto A. Lanza, Senior Associate General Counsel
(703) 797-6600
elanza@msrb.org
Contact: Jill C. Finder, Associate General Counsel
(703) 797-6600
jfinder@msrb.org
Implementation of Amendments to Rule G-27, on Supervision,
Delayed Until February 29, 2008
Alexandria, VA - Today, the MSRB filed with the SEC, for immediate effectiveness, a proposal to delay, until February 29, 2008, implementation of the recently approved amendments to Rule G-27, on supervision, that were scheduled to become effective on November 26, 2007. The amendments incorporated into Rule G-27 most of the requirements in FINRA Rules 3010 and 3012 to help ensure a coordinated regulatory approach in the area of supervision and to facilitate inspection and enforcement.
The MSRB has received inquiries regarding the amendments to Rule G-27 from industry members indicating some confusion over which type of principal is required based on the activities conducted at branch offices and offices of supervisory jurisdiction. The MSRB is currently reviewing the amendments in light of these inquiries and anticipates publishing a notice in the near future addressing the questions and concerns raised. The MSRB therefore believes it is appropriate to delay the implementation of the amendments in light of this pending review, and to give firms the time needed to determine which, if any, of their personnel must be registered as a principal (either a municipal securities principal (Series 53) or a municipal fund securities limited principal (Series 51) based on the activities undertaken at a branch office and/or office of supervisory jurisdiction.
A copy of a notice describing the proposal in more detail is attached and will soon be available at the MSRB's web site at www.msrb.org.
