MSRB published investor education materials on mark-up and mark-down disclosures in municipal securities trade confirmations. The materials provide additional guidance for complying with new rules scheduled to take effect May 14, 2018.
FINRA reminded member firms that funding for the Governmental Accounting Standards Board ("GASB") comes from the GASB Account Support Fee, collected on a quarterly basis from member firms that report trades to the MSRB.
At an upcoming webinar, MSRB will review "key provisions" of amendments to requirements concerning (i) confirmation, clearance, settlement and other uniform practices and (ii) prices and commissions related to disclosure of markups and markdowns.
The MSRB provided guidance to investment advisers on the application of certain investor/customer protections. The new guidance relates to transactions for managed accounts in which a registered investment adviser is exercising discretion to buy and sell municipal securities on behalf of the account holder.
The SEC requested comments on MSRB-proposed amendments to MSRB Rules G-15 and G-30 that would require dealers to provide retail investors with "meaningful and useful pricing information" in order to help them assess the cost of their municipal bonds transactions. The request for comments was published in the Federal Register.
The MSRB proposed a rule change that would require dealers to disclose to retail investors the dollar value and percentage of compensation to customers, as well as references to trade price data about the bonds.
The SEC Investor Advisory Committee approved (i) recommendations by the Market Structure Subcommittee to enhance information for bond market investors, and (ii) the SEC concept release on business and financial disclosure that is required by Regulation S-K.
FINRA reminded member firms that it funds the budget of the Governmental Accounting Standards Board ("GASB") with the GASB Account Support Fee, collected on a quarterly basis from member firms that report trades to the MSRB.
The SEC solicited comments on the MSRB-proposed amendment to modernize the mathematical formula that calculates the dollar price of interest-bearing municipal securities with periodic interest payments (e.g., daily, monthly, quarterly or annually) that have more than six months to redemption.
The MSRB solicited comments on draft rule amendments to Rule G-15 ("Confirmation, Clearance, Settlement and Other Uniform Practice Requirements with Respect to Transactions with Customers") to require broker-dealers and municipal dealers to disclose the mark-up or mark-down on retail customer confirmations for specified principal transactions.
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