MSRB Seeks Information on Rate Card Process

The MSRB issued a Request for Information ("RFI") on specific topics related to the Rate Card Process—the rate-setting process for fees and charges on municipal securities dealers and advisers—instituted in 2022, but suspended by the SEC and withdrawn by the MSRB for 2024.

As described in the Notice, the Rate Card Process "applies to the establishment of the municipal advisor professional fee under MSRB Rule A-11 [("Assessments for Municipal Advisor Professionals")] and the underwriting, transaction, and trade count fees for dealers under MSRB Rule A-13 [("Underwriting and Transaction Assessments for Brokers, Dealers and Municipal Securities Dealers")], with such Rate Card Fees anticipated to be set generally on an annual basis."

In January 2023, stakeholders raised concerns with the Rate Card Process in response to the MSRB's fees for 2024. The SEC subsequently suspended, and the MSRB withdrew, its fee filing "in order to meaningfully engage with stakeholders to better understand their concerns and to embark on a retrospective review of the Rate Card Process." Based on those concerns, the MSRB seeks information on (i) rate setting for dealers (as to the use of market projections and market activity fees); (ii) rate setting for municipal advisers (as to all aspects of the fee structure); (iii) fee distribution across regulated entities (related to both methodology and potential "unintended consequences ... from a change in the relative share of fees between municipal advisors and dealers); and (iv) management of organizational reserves "to responsibly fund the future of regulation" of the Rate Card Process and to potentially establish a "rate stabilization fund").

Responses to the RFI are due January 31, 2025.