MSRB Rule G-20: Gifts, Gratuities, Non-Cash Compensation and Expenses of Issuance

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Target Audience

  • Brokers-dealers 
  • Municipal Advisors

Learning Objectives

At the end of this course, the learner will be able to:

  • Explain the requirements of MSRB Rule G-20;
  • Understand exclusions from the$100 limit per person, per year; and
  • Describe the recordkeeping requirements under MSRB Rule G-8 that apply to dealers and municipal advisors under MSRB Rule G-20.

Course Outline

1. Introduction 
a. Review the Rules
i. MSRB Rule G-20: Gifts, Gratuities, Non-Cash Compensation, and Expenses of Issuance
ii. MSRB Rule G-8: Books and Records (A, H)
iii. MSRB Rule G-17: Fair Dealing
iv. MSRB Rule G-27: Supervisory Regulations for Dealers
v. MSRB Rule G-42: Duty of Care
vi. MSRB Rule G-44: Supervisory Regulations for Municipal Advisors

2. Scenario 1 - Municipal Security Financing: Public Private Partnership (P3) Tollway Project
a. Giving with the intent to influence
b. Appearance of impropriety
c. Retirement gift for long-time colleague
d. Ratings agency trip 
e. Birthday gift 
f. Attending the theater  
g. Lavish entertainment

3. Scenario 2 - Municipal Security Financing: Small Town High School Construction Project
a. Going out to lunch – a series of small, personal events
b. Client solicits a gift or experience
c. Aggregation of gifts as a sole proprietor
d. Use of bond proceeds of municipal offerings and reimbursement of entertainment expenses
e. Charitable golf outing
f. Email request to sponsoring a school team or event
g. Fundraising dinner and considerations 
h. Appearance of impropriety
i. A closing dinner 

4.  Supervisory Events

a. Free merchandise give-a-ways 
b. Non-cash compensation and sales incentives
c. Policies and procedures
d. Normal business dealings
e. Aggregation of gifts
f. Life events
g. Holiday gifts

5. Assessment