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

MSRB PROVIDES GUIDANCE FOR STATE AND LOCAL GOVERNMENTS WHEN HIRING MUNICIPAL ADVISORS

Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) today published guidance to help state and local governments evaluate compensation arrangements for the professionals they hire to advise them on financial matters such as issuing municipal securities.  

“State and local governments often rely on municipal advisors to help them make decisions about complex financing options that can have long-term effects for taxpayers,” said Lynnette Kelly, executive director of the MSRB, which regulates municipal advisors. “The MSRB recommends that state and local governments assess the services they need from their advisor and the associated fee structures.” 

Municipal advisors may offer a range of services, either in connection with a specific new issue of  securities in the municipal bond market, or more generally. Financial Considerations for Hiring Municipal Advisors is part of the MSRB’s online State and Local Government Toolkit, a collection of educational resources to help state and local governments learn about municipal bond issuance, including understanding the roles and responsibilities of municipal advisors and other financial professionals and what to expect from an underwriter. The new guidance on municipal advisor compensation is a resource for state and local governments that may be hiring a municipal advisor for the first time.     

The MSRB provides the toolkit as part of its mission to protect state and local governments and other municipal entities in the municipal bond market.

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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