Municipal Securities Rulemaking Board

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Municipal Securities Rulemaking Board
ProductsFinancial regulation of municipal bonds
FieldsFinancial services
Websitewww.msrb.org

The Municipal Securities Rulemaking Board (MSRB) is a

municipal securities market. This including tax-exempt and taxable municipal bonds
, municipal notes, and other securities issued by states, cities, and counties or their agencies to help finance public projects or for other public policy purposes.

History

The MSRB was created by the Section 15B of the

Pub. L.Tooltip Public Law (United States) 94–29, and codified at 15 U.S.C. § 78o-4(b)) to create a mechanism for the regulation of municipal securities as well as brokers, dealers, and banks in the municipal securities business.[1][2]

The Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 broadened the MSRB's rulemaking authority to also regulate so-called municipal advisors, which include financial advisors, swap advisors, brokers of guaranteed investment contracts and other market participants that advise on the issuance of municipal securities and provide certain other types of advice to state and local governments, public pension funds and other municipal entities on municipal derivatives, investment strategies and other financial matters. As of March 2013, since the SEC has not released the definition of "municipal advisor", the MSRB's rules in this regard are suspended and there is considerable concern in the industry as to whether underwriters and/or other regulated professionals may be viewed as municipal advisors, thereby having the related fiduciary duties. The MSRB's investor protection rules will be extended to protect municipal entities as well.

Mandate

Like the

Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC).[5]

Among its investor protection rules, the MSRB is best known for adopting the first nationwide

Pay to Play rule, known as Rule G-37, designed to eliminate the use of political contributions to obtain municipal underwriting business from state and local governments. The MSRB's investor protection rules also apply to state-operated 529 plans marketed by broker-dealers, as well as to the underwriting, sales and trading of Build America Bonds and other taxable municipal obligations. In addition, the MSRB operates the Electronic Municipal Market Access
(EMMA) system, which provides free on-line access to comprehensive municipal securities disclosure documents, trade prices, interest rate information, and market statistics.

Structure

The MSRB is composed of members from regulated broker-dealers and banks as well as from the public. Beginning on October 1, 2010, the MSRB will be recomposed to consist of a majority of independent public members and to include representatives of municipal advisors.

See also

References

  1. ISBN 9780735567856
    .
  2. ISBN 9780784472293
    .
  3. ^
    ISBN 9781118044940
    .
  4. ^ Municipal Securities Rulemaking Board. "Creation of the MSRB". Retrieved 30 March 2014.
  5. ^ Municipal Securities Rulemaking Board. "Enforcement of MSRB Rules". Retrieved 28 April 2014.

External links

Retrieved from "https://en.wikipedia.org/w/index.php?title=Municipal_Securities_Rulemaking_Board&oldid=1215114985"