MSRB Letter to SEC Investor Advocate Highlights Municipal Market Practices that May Affect Retail Investors

Date: October 18, 2017

Contact: Jennifer A. Galloway, Chief Communications Officer


Washington, DC – In a letter to the Securities and Exchange Commission’s Office of the Investor Advocate this week, the Municipal Securities Rulemaking Board (MSRB) emphasized its concerns about municipal market practices that pose risks for retail investors, and reiterated its commitment to enhancing transparency and fairness in the municipal market through a continued focus on pricing and disclosure.

“Investor protection is at the core of the MSRB’s mission,” said MSRB Executive Director Lynnette Kelly. “We monitor trends, products and practices in the municipal market with an eye toward those that may present risks to retail investors. We are proud to support the important work of the SEC’s Investor Advocate and help flag areas of concern for municipal bond investors.”

The Securities Exchange Act of 1934 requires the Office of the Investor Advocate to report annually to Congress, and the MSRB regularly provides input for the report.

Read previous MSRB letters to the Investor Advocate here.

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.