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

MSRB TO REQUIRE DEALERS TO DISCLOSE MORE INFORMATION REGARDING CONTRIBUTIONS
 TO BOND BALLOT CAMPAIGNS

Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) received approval from the Securities and Exchange Commission to expand disclosures related to contributions made by municipal securities dealers to bond ballot measure campaigns.

The new requirements seek to provide more transparency to address the perception that dealers’ contributions to bond ballot campaigns, which secure voter approval for taxpayer-funded public projects, could influence the award of municipal securities underwriting business to dealers.

“Even the appearance of pay-to-play in the municipal bond market can undermine public confidence,” said MSRB Executive Director Lynnette Kelly. “Requiring more disclosure about dealers’ bond ballot contributions will shine light on potential connections between dealers’ financial contributions and the awarding of bond business.”

The new disclosure requirements, which include information on the timing of dealer contributions, the identity of the municipal entity issuing the voter-approved bonds and the related underwriting by the dealer, take effect July 1, 2013. The information will be published on the MSRB’s EMMA® website.

 

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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