Rule g17 interpretive notice msrb notice 201225 on rule g17, on fair dealing, was approved by the securities and exchange commission on may 4, 2012 secapproved interpretive notice carries the force of federal law notice is effective august 2, 2012 note. Municipal advisors may register for new webinars and access on. Msrb rule g8 placement agent limitations on gifts the municipal securities rulemaking board is continuing to tighten the limits on what placement agents can do. As previously covered, the msrb proposed to amend its interpretive guidance under msrb rule g 17 conduct of municipal securities and municipal advisory activities. Msrbs markup disclosure requirements to take effect in may. Sifma provides comments to the municipal securities rulemaking board msrb on three proposed rule changes to msrb rule g3 msrb notice 2022. An underwriters primary role is to purchase securities with a view to the distribution of those securities in an armslength commercial transaction unlike municipal advisors, an underwriter does not have a. Download a pdf of the msrbs rule book updated annually on october 1. Msrb paytoplay rule expanded, opening door to enforcement by kevin glandon on february 18, 2016 posted in paytoplay, sec paytoplay on wednesday, the municipal securities rulemaking board msrb announced that its expanded paytoplay rules will cover municipal advisors, including thirdparty solicitors, as of august 17, 2016. About the msrb msrb rule g 17 update on financial disclosure resources for issuers.
It is dependent upon the sro to which you belong, and varies based on your firms size. Required manner and timing of disclosures, and financial aspects of underwriting transactions. The draft rule makes conforming changes to msrb rules g8 and g9 required records and preservation period, respectively and forms g37 and g37x required reporting to the msrb. Msrb rule g18, the new bestexecution rule for municipal securities, became effective march 21, 2016. Rule g23 underwriters prohibited from serving as financial. Jun 17, 2016 msrb rule g18, the new bestexecution rule for municipal securities, became effective march 21, 2016. Under finra rules, a series 6 license only allows individuals to be involved in the purchase and sale of funds and variable products. Securities and exchange commission sec and the municipal.
Rule g8 pertains to books and records to be made by brokers, dealers, and municipal securities dealers. The following text, extracted from the notice, describes the different roles of a financial advisor and an underwriter. On march 6, 2012, the municipal securities rulemaking board msrb issued a request for comment on proposed rule amendments and interpretive notice on retail order provisions proposal. Sec approves new msrb rule g42 on duties of nonsolicitor municipal advisors and related amendments to. New msrb compliance advisory offers guidance on internal. June 2017 msrb rule g8 customer and municipal advisory client complaint and problem codes guide. Mar 21, 2016 msrb rule g18, effective march 21, 2016, establishes a bestexecution rule for municipal security transactions. The msrb will hold an informational webinar for municipal advisors and other interested market participants on draft msrb rule g36 and the rule g17 interpretive notice on march 1, 2011 at 3. Msrb asks for feedback to improve g17 disclosure rule. Rule g42 provides certain standards of conduct for municipal advisors that engage in municipal advisory activities. Muniedpro, the msrbs free elearning platform, now offers order periods.
As previously covered, the msrb proposed to amend its interpretive guidance under msrb rule g17 conduct of municipal securities and municipal advisory activities. On december 4, 2009, the msrb filed with the sec amendments to rule g37 and rule g8. Msrb rule g14 requires dealers to report all executed transactions in most. Interpretive notice on duties of underwriters to issuers webinar part 4. The exam covers basic knowledge of the internal workings and. Jan 07, 2016 the draft rule makes conforming changes to msrb rules g 8 and g 9 required records and preservation period, respectively and forms g 37 and g 37x required reporting to the msrb. Msrb update of primary contact information msrb g40. Msrb amends proposed changes to guidance on certain municipal. Sep 25, 20 rule g17 obligations educational webinar and conference calls. On wednesday, the municipal securities rulemaking board msrb announced that its expanded paytoplay rules will cover municipal advisors, including thirdparty solicitors, as of august 17, 2016. Interpretive notice on duties of underwriters to issuers webinar part 3. When performing municipal advisory activities for municipal entity clients, a municipal advisor is subject to a fiduciary duty and must fulfill a duty of loyalty.
Msrb proposes new rule on minimum bond trading denominations. A closer look at new guidance on bond markup disclosures. Oct 22, 2019 the msrb stated that it based the amendments on comment letters received after the original proposal was published in the federal register. Rule g21 should incorporate finra rule 2210 by reference and be focused on dealer activity msrb rule g21 was adopted in 1978, and since its adoption the rule has. Jul 20, 2016 recent revisions to msrb rule g 14 posted on july 20, 2016 by scm communications on may 22, 2015, the securities and exchange commission sec approved certain amendments to msrb rule g 14 related to transaction reporting, which became effective on july 18, 2016. Msrb rule g40 requires all municipal securities dealers and municipal advisors with an msrb account to update their primary contact information or affirm that the information is correct within 17 business days after the end of each calendar year. Msrbs markup disclosure requirements to take effect in. On august 2, 2012, a new municipal securities rulemaking board msrb interpretive notice 1 the notice will take effect and will establish guidelines for a municipal securities underwriters obligations to issuers under msrb rule g17. Slides regarding this interpretive notice provide only a brief overview. Thus, an underwriter must not misrepresent or omit the facts, risks, potential benefits, or other material information about municipal securities activities undertaken with a municipal issuer. Below please find a link to the text of the proposed rule changes.
The sec must approve the rules before they would become effective. At the time of adoption, the msrb filed a notice regarding rule g23 with the securities and exchange commission. Rule g 42 provides certain standards of conduct for municipal advisors that engage in municipal advisory activities. The msrb is now seeking comment on proposed new rule g. The msrb has issued implementation guidance 2 the guidance to advise dealers of the msrbs expectations on how firms should. For additional information on the msrb proposal, see the related msrb notice here. Automatic exemptions are available to brokers, dealers, or municipal securities dealers prohibited from engaging in municipal securities business with an issuer due to a.
The new msrb rule would require that every syndicate participant in an offering with a retail distribution component conform to the issuers definition of who constitutes a retail investor, and. Aug 22, 2018 duties of nonsolicitor municipal advisors. Municipal securities rulemaking board rule g37 political. Sec approves creation of msrb supervisory and compliance. How large must mandated fidelity bonds be as required by the msrb rule g6. Notice of filing and immediate effectiveness of a proposed rule. The msrb announced the request tuesday, following signals by msrb president lynnette kelly that the board would be taking a look at the 2012 interpretive guidance to its rule g17 as part of a.
However, msrb rule g17 does not merely prohibit deceptive conduct on the part of the dealer. The municipal advisor representative qualification exam is designed to test the minimum standards required of municipal advisor representatives and municipal advisor principals, two new classifications created when the msrb revised rule g3 to meet the requirements of the doddfrank wall street reform and consumer protection act. On may 22, 2015, the securities and exchange commission sec approved certain amendments to msrb rule g14 related to transaction reporting, which became effective on july 18, 2016. Dec 02, 2015 the municipal securities rulemaking board msrb recently released its best execution guidance under msrb rule g18 the rule or rule g18. Msrb proposes additional exceptions for trading municipal. Municipal securities rulemaking board msrb council of. The msrbs rule g17 is sometimes referred to as the fair dealing rule and the content of the rule is as follows. Msrb issues guidance on new underwriter disclosure requirements july 31, 2012 on august 2, 2012, a new municipal securities rulemaking board msrb interpretive notice 1 the notice will take effect and will establish guidelines for a municipal securities underwriters obligations to issuers under msrb rule g17. The rule requires brokers and dealers to make reasonable efforts to find as favorable a price as possible for a customers transaction, given the prevailing conditions of the market. Msrb rule g 17, cdiac, march 18, 2014, tracy m mccraner, financial management director, city of san diego keywords. Jun 18, 2015 new msrb rule will increase available information regarding trades of municipal securities last month, the securities and exchange commission the sec approved amendments by the municipal securities rulemaking board the msrb to msrb rule g14 regarding the reporting of trades of municipal securities.
Msrb chair colleen woodell has said that the muni market will gain an unprecedented level of. On december 4, 2009, the msrb filed with the sec amendments to rule g 37 and rule g 8. The msrb hosted a free virtual webinar about emmas new smart search and the additional. Municipal securities dealers must deal fairly with. The msrb will hold a webinar on the rule changes on jan. December 23 2015 the securities and exchange commission approved msrb new rule g42 setting forth required standards of conduct and duties when engaging in municipal advisory activities, other than solicitation activities. In the conduct of its municipal securities or municipal advisory activities, each broker, dealer, municipal securities dealer, and municipal advisor shall deal fairly with all persons. Current rule g 15f rule g 15f provides that a dealer may not effect a customer transaction in municipal securities issued after june 1, 2002 in an amount lower than the minimum denomination of the issue. The new msrb rule will now be consistent with the finra rules. In addition to this annual requirement, msrb rule g40 requires municipal securities dealers and municipal advisors. Recent revisions to msrb rule g14 mastercompliance. Msrb issues guidance on new underwriter disclosure. Municipal securities rulemaking board page 2 of 10 should be incorporated by reference into rule g21, or at a minimum the two rules should be more closely harmonized. On april 5, 2000, the municipal securities rulemaking board msrb or board submitted to the securities and exchange commission sec or commission, pursuant to section 19b1 of the securities exchange act of 1934 act and rule 19b4 thereunder, a proposed rule change relating to municipal fund securities.
Municipal securities rulemaking board msrb rule g17 cdiac. The msrb produced this guide to understanding various measures of municipal bond interest rates. Regulatory notice 201602 publication date january 6, 2016 stakeholders municipal securities dealers notice type request for comment comment deadline march 6, 2016 category uniform practice affected rules rule g12 receive emails about msrb regulatory notices. This rule establishes baseline supervisory and compliance obligations for municipal advisors. At the time of adoption, the msrb filed a notice regarding rule g 23 with the securities and exchange commission. The bestexecution rule requires brokers, dealers and municipal securities dealers to use reasonable diligence to ascertain the best market for the subject security. Read the msrb s fiscal year 2019 report for an overview. Msrb rule g42 the fiduciary duty rule effective june 23 2016.
The municipal securities rulemaking board msrb is the regulatory agency that oversees firms involved in underwriting municipal bonds and providing financial advice. In our view, finra and the msrb should make clear that faq 3. Manage through change rrooouuuttiiinnnggg hh ooottt i. At this point, most brokerdealers registered with rule g18 is similar to finras best execution rule, but it has been tailored to the characteristics of the municipal securities market. On october 24, the municipal securities rulemaking board msrb received approval from the u. Msrb asks for feedback to improve g17 disclosure rule bond. Municipal securities rulemaking board regulate the underwriting of municipal securities, not the issuers. Msrb rule g18, effective march 21, 2016, establishes a bestexecution rule for municipal security transactions. Last revised in 1983, rule g12h establishes a 90business day time limit for closeouts. For information about compliance with msrb rules, including the referenced rules.
Msrb paytoplay rule expanded, opening door to enforcement. The municipal securities rulemaking board msrb received approval from the securities and exchange commission sec on july 27, 2017, to amend msrb g26, on customer account transfers, to modernize the rule and promote a uniform customer account transfer standard for all brokers, dealers, municipal securities brokers and municipal securities dealers collectively, dealers. Rule g 17 interpretive notice msrb notice 201225 on rule g 17, on fair dealing, was approved by the securities and exchange commission on may 4, 2012 secapproved interpretive notice carries the force of federal law notice is effective august 2, 2012 note. Proposed amendments to msrb rule g12 on closeout procedures current closeout process summary of current rule. Msrb rule g17 provides that, in the conduct of its municipal securities. Msrb amends proposed changes to guidance on certain. It is the first new rule for these advisors since the sec released its final municipal advisor registration rule in. The msrb stated that it based the amendments on comment letters received after the original proposal was published in the federal register. See rule g 17, on conduct of municipal securities and municipal advisory activities. New msrb rule will increase available information regarding trades of municipal securities last month, the securities and exchange commission the sec approved amendments by the municipal securities rulemaking board the msrb to msrb rule g14 regarding the reporting of trades of municipal securities. However, there is no requirement that open transactions be closed out within 90 business days.
Msrb narrows the definition of limited representative investment company and variable contracts products series 6. Municipal securities rulemaking board page 2 of 10 should be incorporated by reference into rule g 21, or at a minimum the two rules should be more closely harmonized. Securities and exchange commission sec to implement rule g 44. However, such donations may trigger obligations or prohibitions under other rules. The msrb s rule g 17 is sometimes referred to as the fair dealing rule and the content of the rule is as follows. Register for a seminar or webinar home cdiac muncipal maket regulatory activity municipal securities rulemaking board msrb. Rule g 8 pertains to books and records to be made by brokers, dealers, and municipal securities dealers. It is the first new rule for these advisors since the sec released its final municipal.
Municipal securities rulemaking board 3 categories of msrb rules include 1 rules that provide consistent legal definitions of terms used int he business of trading municipal securities, 2 administrative rules that cover the organization and functions of the msrb, and 3 general rules and regulations that describe msrb policies. Automatic exemptions are available to brokers, dealers, or municipal securities dealers prohibited from engaging in municipal securities business with an issuer due to a contribution covered by rule g37. Nov 29, 2016 the msrb will hold a webinar on the rule changes on jan. Without admitting or denying the findings, the firm consented to the sanctions and to. Nama comment letters national association of municipal advisors. Securities and exchange commission sec to implement rule g44. Draft rule g49 is largely similar to rule g15f as it was proposed to be amended in april 2016 with certain modifications. Msrb chair colleen woodell has said that the muni market will gain an unprecedented level of transparency when the rule changes. Rule 19b4 thereunder, 2 notice is hereby given that on june 17, 20, the municipal securities rulemaking board the msrb or board filed with the securities and exchange commission the sec or commiss ion the proposed rule change as described in items i, ii, and iii below, which items have been prepared by the msrb. Msrb rule g10 investor education and protection towards providing information that may be helpful to you with respect to your municipal securities transactions with citi, please note that citigroup global markets inc.
Client alert municipal securities rulemaking board msrb rule g15f prohibits a broker, dealer or municipal securities dealer dealers from effecting a customer transaction in municipal securities in an amount lower than the minimum denomination of the issue stated in offering documents, subject to two current exceptions. Msrb issues guidance on new underwriter disclosure requirements. The msrb establishes rules that securities firms, banks and municipal advisors must follow when engaging in municipal securities transactions and advising investors and state and local governments. Msrb rule g17 requires dealers acting as underwriters in a. Msrb rule g17, cdiac, march 18, 2014, tracy m mccraner, financial management director, city of san diego keywords. Sec approves creation of msrb supervisory and compliance rule. The municipal securities rulemaking board msrb recently released its best execution guidance under msrb rule g18 the rule or rule g18. However, msrb rule g 17 does not merely prohibit deceptive conduct on the part of the dealer. Rule g17 requires an underwriter to deal fairly at all times with both municipal issuers and investors. Rule g 21 should incorporate finra rule 2210 by reference and be focused on dealer activity msrb rule g 21 was adopted in 1978, and since its adoption the rule has. Regulatory notice 201602 publication date january 6, 2016 stakeholders municipal securities dealers notice type request for comment comment deadline march 6, 2016 category uniform practice affected rules rule g 12 receive emails about msrb regulatory notices. The msrb announced the request tuesday, following signals by msrb president lynnette kelly that the board would be taking a look at the 2012 interpretive guidance to its rule g 17 as part of a.