SEC Requests Comments on MSRB Proposal on Advertising by Municipal Advisors and Dealers

The SEC requested comments on a recent proposal by the MSRB that would (i) institute a new rule on advertising by municipal advisors and (ii) amend the MSRB rule on advertising by municipal securities dealers.

As previously covered, the proposed amendments to Rule G-21, applicable to dealers, are intended to conform the MSRB advertising rule for dealers to similar rules of other regulators. This would include conforming the rule's definition of "form letter" and the FINRA Rule 2210 definition of "correspondence."

New MSRB Rule G-40, applicable to advertising by municipal advisors, would (i) apply to all "advertisements" by a municipal advisor, (ii) define the terms "advertisement" and "form letter" and set forth the general standards and content standards for advertisements, and (iii) require approval by a principal, in writing, before the first use of an advertisement.

Comments must be submitted within 30 days of publication in the Federal Register.