MSRB Holds Quarterly Meeting, Board Discusses Rule G-17
The MSRB Board of Directors held its quarterly meeting April 24-26 in Alexandria, VA, where it focused on efforts to consolidate numerous interpretations of a rule that forms the basis of a dealer's obligation of fair dealing.
The MSRB has been working to restate certain interpretive guidance associated with MSRB Rule G-17on fair dealing into new or revised rules. The outcome of these efforts is expected to be a comprehensive package of rules that clarifies Rule G-17 obligations and that is expected to be filed with the SEC later this year. At this meeting, the Board:
- Incorporated comments received and approved its prior proposal to consolidate into a stand-alone rule existing requirements for dealers to disclose material information to customers in connection with the purchase or sale of a municipal security;
- Agreed to seek comment on a proposal to establish a new definitional rule for "sophisticated municipal market professionals" (SMMPs) and a related rule setting forth the obligations of dealers toward SMMPs;
- Discussed comments received on an earlier proposal seeking comment on its entire rule book, and agreed to begin to prioritize recommendations that would further streamline MSRB rules and ensure that they reflect current market practices and conditions;
- Discussed comments received on two concept proposals the MSRB issued previously; and
- Continued to consider a regulatory framework for municipal advisors, which will be further developed following the SEC's finalization of a definition of municipal advisor.
Click here to learn more (links externally to MSRB website).See generally for a compilation of related news items: Current Topics - Municipal Securities.