MSRB Reminds Dealers About Fair Practice Obligations to Issuers

Date: September 29, 2009

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


Alexandria, VA - The Municipal Securities Rulemaking Board (MSRB) today issued a notice reminding municipal securities dealers of their obligations to deal fairly with issuers of municipal securities.  These duties, which are part of MSRB's rules for dealers, require them to "deal fairly with all persons and not engage in any deceptive, dishonest or unfair practice."

Today's notice emphasizes that the MSRB's fair dealing rules apply to dealers' interaction with issuers in connection with the underwriting of municipal securities.  "Dealers have an obligation to be open, honest and transparent with issuers, according to the fair practice principles set forth by the industry in business dealings," said MSRB Chair Ronald A. Stack.

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.