MSRB Publishes Compliance Advisory for Brokers, Dealers and Municipal Securities Dealers

Date: February 24, 2016

Contact: Jennifer A. Galloway, Chief Communications Officer


Washington, DC – The Municipal Securities Rulemaking Board (MSRB) today published its first Compliance Advisory for Brokers, Dealers and Municipal Securities Dealers, which identifies some of the key compliance risks for dealers that, if not properly addressed, could adversely affect public confidence in the municipal securities market.  

The MSRB’s 2016 Compliance Advisory for Brokers, Dealers and Municipal Securities Dealers outlines the core components of established MSRB fair practice regulations designed to protect investors and ensure fairness and ethical conduct in each transaction. Among other topics, the advisory includes provisions of a new best execution rule for the municipal securities market created by the MSRB, which becomes effective on March 21, 2016.

“Protecting the integrity of one of our country’s most essential local financing mechanisms is a responsibility shared by regulators and the regulated firms,” said MSRB Executive Director Lynnette Kelly. “To help ensure that all brokers, dealers and municipal securities dealers remain mindful of their responsibilities, the MSRB has outlined risks and considerations that can be included in firms’ evaluations of their compliance controls.”

The MSRB uses numerous tools to regulate the municipal securities market, including extensive education and outreach to regulated entities to ensure that they understand and comply with market regulations. Today’s advisory is another effort to support a strong regulatory framework and assist dealers in meeting their obligations. These initiatives support the MSRB’s effort to ensure that the municipal market continues to operate with the key protections that investors and municipal entities deserve.  

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.