MSRB Proposes Permanent 21-Member Board of Directors

Date: August 11, 2011

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


Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) today proposed to establish a permanent 21-member, public-majority Board of Directors.

Following the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the MSRB increased, on a transitional basis, the size of its Board of Directors from 15 to 21 members. The MSRB also provided for municipal advisor representation on the Board, as a result of its new rulemaking authority over municipal advisors, and modified the Board’s composition to include a majority of independent public members. The MSRB is now proposing to make this transitional Board structure permanent. Under the proposal, the 21 Board members would serve staggered, three-year terms.

“The MSRB’s Board of Directors has been very effective in carrying out its mission and representing the diversity of the municipal market,” said MSRB Executive Director Lynnette Kelly Hotchkiss. “Our rulemaking initiatives have benefited from the numerous perspectives represented on the Board.”

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.

Comments on the proposal should be submitted to the Securities and Exchange Commission.

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.