MSRB Amends Board Governance Process

The SEC approved an MSRB proposal to amend Rules A-3 ("Membership on the Board") and A-6 ("Committees of the Board") to improve MSRB governance and transparency (see previous coverage). The effective date for the proposed rule change is October 1, 2020.

The amendments will, among other things:

• lengthen the required separation period to five years for public representatives who have prior industry associations;
• reduce the Board size to 15 members from 21 through a transition plan that includes an interim year in which the Board will have 17 members;
• establish a requirement that at least two members of the 15-member Board be municipal advisors;
• impose a six-year term limit for Board members; and