SEC Seeks Comments on MSRB Proposal to Apply Pay-to-Play Rules to Municipal Advisors

The SEC solicited comment on the MSRB's proposal to expand the scope of its "pay-to-play" rules to cover the activities of municipal advisors.

The proposal would amend MSRB Rule G-37 ("Political Contributions and Prohibitions on Municipal Securities Business") in order to safeguard the municipal securities market against pay-to-play practices. The MSRB also proposed related amendments to MSRB Rules G-8 ("Books and Records to Be Made by Brokers, Dealers and Municipal Securities Dealers") and G-9 ("Preservation of Records"), as well as to Forms G-37 and G-37x.

If approved, the rule change would extend the MSRB's municipal securities dealer pay-to-play rule to apply to all municipal advisors, including those who act as third-party solicitors.