MSRB Pay-to-Play Rules Will Soon Apply to Municipal Advisors

The SEC approved amendments to MSRB Rules G-37 ("Political Contributions and Prohibitions on Municipal Securities Business"), G-8 ("Books and Records to Be Made by Brokers, Dealers and Municipal Securities Dealers") and G-9 ("Preservation of Records"), as well as Forms G-37 and G-37x, under Securities Exchange Act Section 19(b)(2)(D). The amendments will become effective on August 17, 2016.

The amendments generally are intended to apply the same requirements for municipal dealers and their associated persons to municipal advisors and their associated persons. Regulated firms will be required to preserve relevant records for six years.