MSRB Delays Implementation of Amendments to Rule G-27, on Supervision, Until February 29, 2008

Date: September 14, 2007

Contact:            Lynnette Kelly Hotchkiss, Executive Director
                        (703) 797-6600

Contact:            Ernesto A. Lanza, Senior Associate General Counsel 
                        (703) 797-6600 

Contact:            Jill C. Finder, Associate General Counsel 
                        (703) 797-6600

Implementation of Amendments to Rule G-27, on Supervision,
Delayed Until February 29, 2008

Alexandria, VA - Today, the MSRB filed with the SEC, for immediate effectiveness, a proposal to delay, until February 29, 2008, implementation of the recently approved amendments to Rule G-27, on supervision, that were scheduled to become effective on November 26, 2007. The amendments incorporated into Rule G-27 most of the requirements in FINRA Rules 3010 and 3012 to help ensure a coordinated regulatory approach in the area of supervision and to facilitate inspection and enforcement.

The MSRB has received inquiries regarding the amendments to Rule G-27 from industry members indicating some confusion over which type of principal is required based on the activities conducted at branch offices and offices of supervisory jurisdiction. The MSRB is currently reviewing the amendments in light of these inquiries and anticipates publishing a notice in the near future addressing the questions and concerns raised. The MSRB therefore believes it is appropriate to delay the implementation of the amendments in light of this pending review, and to give firms the time needed to determine which, if any, of their personnel must be registered as a principal (either a municipal securities principal (Series 53) or a municipal fund securities limited principal (Series 51) based on the activities undertaken at a branch office and/or office of supervisory jurisdiction.

A copy of a notice describing the proposal in more detail is attached and will soon be available at the MSRB's web site at

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.