MSRB Seeks Comment on Requirements For Financial Advisors

As part of its retrospective review of rules and guidance, the MSRB requests feedback on its ethical standards and disclosure obligations for municipal securities dealers who act as financial advisors to issuers of municipal securities. Comments must be submitted by August 19, 2019.

In particular, the MSRB seeks comments on whether the requirements of MSRB Rule G-23 are sufficient to meet the rule's stated purpose and reflect current practices in the municipal securities market. The rule is in large part intended to limit the conflict of interest between a dealer acting as an advisor and its issuer client; for example, the rule generally prevents the advisor from also acting as an underwriter or as a remarking agent.