MSRB Files With SEC To Transition to Public Majority Board

Date: August 27, 2010

Contact:        Jennifer A. Galloway, Chief Communications Officer
                    (703) 797-6600


Alexandria, VA The Municipal Securities Rulemaking Board (MSRB) today filed with the Securities and Exchange Commission (SEC) a proposal to amend its rule on the composition of its governing board to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act.  

The financial reform law signed by President Barack Obama on July 21, 2010 contains a provision that, for the first time, requires the MSRB to establish a board with a majority of public members. The new law also requires the MSRB's board to include at least one municipal advisor representative. Municipal advisors, who provide financial advice to municipal entities or solicit business from municipal entities on behalf of others, will be regulated by the MSRB beginning October 1, 2010. The MSRB’s proposal creates a transitional 21-member board, composed of 11 public members and 10 industry members, including seven broker-dealer and bank dealer members and three municipal advisor members.

“This is an historic change for the MSRB,” said MSRB Executive Director Lynnette Kelly Hotchkiss. “The proposal creates an MSRB governing board with a majority of independent public members and one that fairly represents all regulated entities.”

The MSRB protects investors, state and local governments and other municipal entities, and the public interest by promoting a fair and efficient municipal securities market. The MSRB fulfills this mission by regulating the municipal securities firms, banks and municipal advisors that engage in municipal securities and advisory activities. To further protect market participants, the MSRB provides market transparency through its Electronic Municipal Market Access (EMMA®) website, the official repository for information on all municipal bonds. The MSRB also serves as an objective resource on the municipal market, conducts extensive education and outreach to market stakeholders, and provides market leadership on key issues. The MSRB is a self-regulatory organization governed by a 21-member board of directors that has a majority of public members, in addition to representatives of regulated entities. The MSRB is overseen by the Securities and Exchange Commission and Congress.