MSRB Plans Numerous New Rules

The MSRB held its quarterly meeting from October 23 through 25, in which it established priorities for the implementation of a regulatory framework for municipal advisors and agreed to develop and solicit public comment on a "best execution" rule for the municipal market.

In light of the SEC September 2013 final registration rule for municipal advisors, the MSRB agreed to proceed with the development of a regulatory framework for advisors that prioritizes the following five rules aimed at protecting municipal entities and investors:

1. fiduciary duty and fair dealing standards of conduct of municipal advisors to municipal entities and obligated persons;
2. supervision requirements for municipal advisory firms and their employees;
3. rules to address the potential for pay-to-play activities by municipal advisors;
4. limitations on gifts and gratuities to employees of municipal securities issuers and other market participants; and
5. the duties of solicitors.

According to the MSRB's press release, additional conforming rule changes also will be proposed as appropriate.

See: MSRB Press Release.