SIFMA Submits Comments to MSRB on Revised Proposal Regarding Duties of Non-Solicitor Municipal Advisors

SIFMA submitted comments to the MSRB regarding a revised draft proposal for MSRB Rule G-42 on the standards of conduct and duties of municipal advisors when engaging in municipal advisory activities other than solicitations.

While SIFMA praised MSRB's efforts in the revision, SIFMA stated that it still has concerns with certain aspects of the revised proposal.

According to SIFMA, the proposed prohibition on principal transactions should only apply to transactions that are directly related to the advice provided by the municipal advisor, rather than transactions that are unrelated to the municipal advisory relationship. Additionally, SIFMA stated, the proposed prohibition should not apply to all business units of a municipal advisor and its affiliates, and should include an exception for municipal advisors that are broker-dealers providing "incidental advice" in connection with brokerage/securities execution services.

See: SIFMA Comment Letter. Related news: SIFMA Submits Comments to MSRB on Duties of Non-Solicitor Municipal Advisors (March 11, 2014).