The SEC approved MSRB amendments to Rules G-19 and G-48 to eliminate the potential for regulatory arbitrage and establish a "uniform standard of investor protection" for transactions in municipal securities by retail investors.
Comments on an MSRB proposal to amend its suitability rules to align Regulation Best Interest standards for bank municipal securities dealers are due by May 31, 2022.
The MSRB reminded investors of the "potential impact to investors of the current market environment on bond prices, liquidity and tax implications from buying certain types of municipal bonds in the secondary market."
The MSRB recently approved amendments that narrow the scope of the annual customer notification requirements under rules for (i) the delivery of investor brochures and (ii) transactions with sophisticated municipal market professionals. The amendments go into effect on October 12, 2021.