SEC Approves New MSRB Rules for Non-Solicitor Municipal Advisors (Reg. Notice 16-03)

The SEC approved MSRB Rule G-42 ("Duties on Non-Solicitor Municipal Advisors") and related amendments to MSRB Rule G-8 ("Books and Records to Be Made by Brokers, Dealers, Municipal Securities Dealers, and Municipal Advisors").

New Rule G-42 establishes core standards of conduct for municipal advisors that engage in municipal advisory activities other than solicitation. The related amendments to Rule G-8 establish recordkeeping requirements that apply when a municipal advisor makes a suitability determination or reviews the recommendation of another party.

Both rules will become effective on June 23, 2016.