SEC Approves Amendments to MSRB Rule G-3 (MSRB Regulatory Notice 2014-13)

The MSRB issued a regulatory notice announcing that the SEC approved amendments to MSRB Rule G-3 on professional qualification requirements. In addition, related non-substantive changes were made to Rule G-7 ("Information Concerning Associated Persons") and Rule G-27 ("Supervision").

The amendments to Rule G-3(a), which will also affect Rules G-7 and G-27, include:

• limiting the scope of permitted activities for a limited representative investment company and variable contracts products to sales to, and purchases from, customers of municipal fund securities;
• eliminating the financial and operations principal classification, qualification and numerical requirements in MSRB Rule G-3(d);
• in Supplementary Material .01 to Rule G-3, clarifying that references to sales include the solicitation of sales of municipal securities; and
• making certain technical and clarifying amendments to Rule G-3.

The effective date of these amendments is September 30, 2014.

See: MSRB Reg. Notice 2014-13. Related news: SIFMA Submits Comments to SEC Regarding MSRB's Proposed Amendments to Rules G-3, G-7 and G-27 (July 15, 2014); MSRB Requests SEC Approval of Proposed Amendments to Rules G-3, G-7 and G-27 (June 6, 2014).