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Contact:           Jennifer A. Galloway, Chief Communications Officer
                       (703) 797-6600
                       jgalloway@msrb.org


MUNICIPAL SECURITIES RULEMAKING BOARD ISSUES STATEMENT ON
REGULATORY AND ENFORCEMENT ACTIVITIES IN THE MUNICIPAL SECURITIES MARKET

Alexandria, VA - In a speech delivered October 28, 2009, U.S. Securities and Exchange Commissioner Elisse Walter raised a number of important issues in her remarks about the regulatory framework of the municipal securities market.  Among these issues is the split nature of municipal securities rulemaking and enforcement applicable to broker-dealers and to state and federally chartered banks. 

The Municipal Securities Rulemaking Board (MSRB) has previously noted that enforcement is essential to an effective system of municipal regulation and, to that end, has advocated the establishment of more formal processes to coordinate regulatory and enforcement activities in this area among the MSRB, SEC, FINRA, the Federal Reserve Board, the FDIC and the U.S. Treasury. 

Specifically, we recommended in testimony before the Senate Banking Committee earlier this year that Congress modify the MSRB's regulatory authority to include an enforcement and examination support function that would further strengthen enforcement in the municipal securities market.  This would make the MSRB's depth of expertise in all aspects of the municipal market -- found nowhere else in the federal government -- more directly available to support such crucial functions. 

In all of its activities, the MSRB seeks to protect investors and ensure a fair and efficient municipal securities market. We look forward to continuing the dialogue with Commissioner Walter and other interested parties about these issues, including expanded enforcement authority for the MSRB.

 

The Municipal Securities Rulemaking Board (MSRB) was established by Congress in 1975 with the mission to protect investors, issuers and the public interest and to promote efficiency, competition and capital formation. MSRB is a private, self-regulatory organization governed by an independent board of directors with market knowledge and expertise. MSRB does not receive federal appropriations and is funded primarily through fees paid by regulated entities. MSRB is overseen by Congress and the Securities and Exchange Commission.

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