MSRB Adopts Rule Establishing a 21-Member Board

Date: October 3, 2011

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


The Municipal Securities Rulemaking Board (MSRB) has adopted a rule establishing a permanent 21-member Board of Directors following approval from the Securities and Exchange Commission.

The MSRB Board of Directors had been operating with 21 members during a transitional period following the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The legislation provided for municipal advisor representation on the Board, as a result of the MSRB’s expanded rulemaking authority over municipal advisors, and expanded the MSRB’s mission to protect municipal entities, in addition to investors.

“Despite the significant changes implemented last year, the Board effectively set the MSRB on its new course,” said MSRB Executive Director Lynnette Kelly Hotchkiss. “Under the chairmanship of Michael Bartolotta, the Board worked tirelessly to develop rules and market transparency initiatives that solidly reflect the sound and varied perspectives of our diverse Board members. We believe a permanent 21-member Board is in the best interests of investors and municipal entities.”

The MSRB Board of Directors includes representatives of investors and municipal entities, as well as representatives of the organizations regulated by the MSRB, which include bank dealers, broker-dealers and municipal advisors. The MSRB’s 21 Board members will transition to staggered, three-year terms. 

The MSRB seated its new Board members on October 1, 2011.