MSRB Issues Advisory On Selective Disclosure Of Material Information

The Municipal Securities Rulemaking Board (MSRB) published an advisory on September 13 highlighting to municipal issuers, dealers and municipal advisors the importance of disclosing material information "fairly, equitably and in the public domain." The MSRB is concerned that "selective disclosure" creates an information imbalance favoring a limited group of bondholders, such as investment banking firms, investment advisors or institutional investors, who are given access to material information that others do not have. Selective disclosure can occur:

• during investor road shows, conferences and one-on-one investor calls or meetings;
• in the course of bank private placements of municipal issues;