MSRB Provides Guidance for State and Local Governments When Hiring Municipal Advisors

Date: August 20, 2013

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


Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) today published guidance to help state and local governments evaluate compensation arrangements for the professionals they hire to advise them on financial matters such as issuing municipal securities.  

“State and local governments often rely on municipal advisors to help them make decisions about complex financing options that can have long-term effects for taxpayers,” said Lynnette Kelly, executive director of the MSRB, which regulates municipal advisors. “The MSRB recommends that state and local governments assess the services they need from their advisor and the associated fee structures.” 

Municipal advisors may offer a range of services, either in connection with a specific new issue of  securities in the municipal bond market, or more generally. Financial Considerations for Hiring Municipal Advisors is part of the MSRB’s online State and Local Government Toolkit, a collection of educational resources to help state and local governments learn about municipal bond issuance, including understanding the roles and responsibilities of municipal advisors and other financial professionals and what to expect from an underwriter. The new guidance on municipal advisor compensation is a resource for state and local governments that may be hiring a municipal advisor for the first time.     

The MSRB provides the toolkit as part of its mission to protect state and local governments and other municipal entities in the municipal bond market.

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 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.