MSRB Clarifies Political Contributions Rulemaking
The MSRB filed an amendment to Rule G-37 on political contributions and prohibitions. Specifically, MSRB Rule G-37(h) is amended to provide that the prohibitions on engaging in municipal securities business and municipal advisory business "shall result from a contribution and be of the scope and length of time as provided under Rule G-37 as in effect at the time that such contribution is made." The amendment clarifies that contributions made by persons who become associated with a dealer, and become municipal finance professionals of the dealer, even if made prior to August 17, 2016 (the effective date of the Rule G-37 Amendments), are subject to the two-year look-back in Rule G-37.
The result of the look-back provision may be to subject a municipal dealer to a prohibition on municipal securities business. The rule amendment is effective immediately and the date of implementation is August 17, 2016.
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