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

MSRB REMINDS DEALERS THAT POLITICAL CONTRIBUTIONS RULE
APPLIES TO ISSUER OFFICIALS RUNNING FOR FEDERAL OFFICE

Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) today reminded municipal securities dealers about its rule on political contributions and its application to issuer officials running for federal office, including President and Vice President. The MSRB rule regarding political contributions, Rule G-37, prohibits dealers from engaging in municipal securities business with issuers for two years if they make certain contributions to the political campaigns of officials of such issuers.

The MSRB created Rule G-37 in 1994 to preserve the integrity of the municipal securities industry by seeking to end the practice of dealers being awarded municipal securities business based on political contributions. MSRB rules have the force of federal law.

“In light of political campaign fundraising efforts going on around the country, we are reminding dealers that the MSRB’s political contribution rule applies to state and local government officials running for federal office,” said MSRB Executive Director Lynnette Kelly Hotchkiss. “We want to ensure that dealers do not inadvertently violate this important rule.”

Today’s notice to dealers also cites prior interpretations of Rule G-37 that address indirect rule violations involving contributions to non-dealer associated political action committees and payments to political parties. These interpretations underscore the Rule G-37 requirement that dealers may not indirectly do what they are prohibited from doing directly.

The Municipal Securities Rulemaking Board (MSRB) protects and strengthens the municipal bond market, enabling access to capital, economic growth, and societal progress in tens of thousands of communities across the country. MSRB fulfills this mission by creating trust in our market through informed regulation of dealers and municipal advisors that protects investors, issuers and the public interest; building technology systems that power our market and provide transparency for issuers, institutions, and the investing public; and serving as the steward of market data that empowers better decisions and fuels innovation for the future. MSRB is a self-regulatory organization governed by a board of directors that has a majority of public members, in addition to representatives of regulated entities. MSRB is overseen by the Securities and Exchange Commission and Congress.

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