MSRB Requests Comments on Extending Pay-to-Play Rule to Municipal Advisors (MSRB Reg. Notice 2014-15)
The MSRB requested comments on draft amendments to MSRB Rule G-37 that would extend the rule to municipal advisors.
Rule G-37 ("Political Contributions and Prohibitions on Municipal Securities Business") is the MSRB's pay-to-play rule for municipal securities dealers.
The proposed amendments would, in accordance with the existing rule for dealers, generally prohibit municipal advisors from engaging in municipal advisory business with municipal entities for two years if certain political contributions have been made to officials of those entities who can influence the award of business. Municipal advisors would be required, like dealers under the existing rule, to disclose their political contributions to officials and bond ballot campaigns for posting on the MSRB's EMMA website.
Comments are due by October 1, 2014. The MSRB will host a webinar on the proposed changes on September 11, 2014.