SIFMA Submits Comments to SEC on New MSRB Rule A-11 Establishing Fees for Municipal Advisor Professionals

SIFMA provided comments to the SEC on the MSRB immediately effective proposal of Rule A-11, on Assessments for Municipal Advisor Professionals, urging the SEC to suspend the rule change.

According to the comment letter, SIFMA opposes the proposed fee increases in Rule A-11, and urged the SEC to suspend the rule change and institute proceedings to disapprove the proposal. SIFMA stated that the proposed changes are inconsistent with Dodd-Frank as there is not a "reasonable relationship" between the amounts assessed to municipal advisors and the level of rulemaking, system development and operational activities currently undertaken by the MSRB. Additionally, SIFMA asserted that while it supports the notion of allocating the MSRB's expenses fairly across all regulated entities, the proposed rule does not establish an equitable fee structure and is actually a double tax on municipal securities dealers that will engage in municipal advisory activities.

See: SIFMA Comment Letter.Related news: MSRB-Proposed Rule Regarding Assessments for Municipal Advisor Professionals (Fed. Reg.) (May 1, 2014); MSRB Proposes Rule Change to Establish Fees for Municipal Advisors (Notice 2014-09) (April 17, 2014).