SIFMA Publishes "Sophisticated Municipal Market Professional Affirmation for Institutional Customers"

SIFMA published a model Sophisticated Municipal Market Professional ("SMMP") Affirmation to meet the requirements of new MSRB Rule D-15, which will become effective on December 7, 2015. SIFMA set forth the elements of the affirmation and the dealer obligations under the MSRB Rules.

According to SIFMA, until the MSRB rule changes become effective, an affirmation from an institutional customer indicating exercise of independent judgment that satisfies FINRA Rule 2111 also can be used to satisfy MSRB rules. Current affirmations will not be valid means of satisfying MSRB rules as of December 7, 2015.

SIFMA developed the new affirmation to help the marketplace comply with MSRB Rule D-15. According to SIFMA, dealers can begin to contact customers immediately to ensure that the new affirmation is in place by the December 7 deadline. The scope of the modified dealer duties to SMMPs is detailed in MSRB Rule G-48.

See: SIFMA Press Release.