MSRB Proposes Municipal Advisor Notification Rule

Date: February 14, 2011

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

MSRB PROPOSES MUNICIPAL ADVISOR NOTIFICATION RULE

Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) today filed with the Securities and Exchange Commission (SEC) a proposal to require municipal advisors to notify the MSRB when the advisor ceases to engage in municipal advisory activities. MSRB notification would be required whether the advisory services are ended voluntarily or pursuant to SEC sanctions.

The Dodd-Frank Wall Street Reform and Consumer Protection Act expanded the MSRB’s jurisdiction to include the regulation of municipal advisors. All municipal advisors engaging in municipal advisory activities are required to be registered with the MSRB. Municipal advisor registration instructions are available on the registration page of the MSRB’s website. Prior to registering with the MSRB, municipal advisors must first register with the SEC under its temporary registration process through the SEC’s website. Municipal advisors are required to register with both the SEC and the MSRB—registration with one regulatory organization will not satisfy the registration requirement of the other regulatory organization.


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.