MSRB Proposes Rule Changes To Align With Reg BI

The MSRB proposed several rule changes to align its rules with the SEC's Regulation Best Interest ("Reg BI").

The MSRB-proposed rule changes would revise:

• Rule G-19 ("Suitability of Recommendations and Transactions") to limit its applicability (to those matters when Reg BI is not applicable);
• Rule G-48 ("Transactions with Sophisticated Municipal Market Professionals") to clarify that relief from conducting a customer-specific suitability analysis when making a recommendation to a Sophisticated Municipal Market Professional (or "SMMP") is only available for recommendations subject to MSRB Rule G-19; and
• Rule G-20 ("Gifts, Gratuities, Non-Cash Compensations and Expenses of Issuance") to align permissible non-cash compensation with related requirements under Reg BI.