MSRB NOTICE 2007-23 (JULY 16, 2007)

REMINDER: DISCLOSURE REQUIREMENTS RELATING TO MAXIMUM SALES LOAD AND TOTAL OPERATING EXPENSE RATIO IN PERFORMANCE ADVERTISEMENTS OF MUNICIPAL FUND SECURITIES HAVE BECOME EFFECTIVE

Amendments to Municipal Securities Rulemaking Board (“MSRB”) Rule G-21, on advertising, and MSRB Rule G-27, on supervision, and an MSRB interpretation on general advertising disclosures, blind advertisements and annual reports relating to municipal fund securities (including interests in 529 college savings plans), became effective on June 5, 2007.[1]  Brokers, dealers and municipal securities dealers (“dealers”) were not required to implement the new provisions of Rule G-21(e)(i)(A)(3) and (4)(a)(iii) relating to disclosure of maximum sales load and total annual operating expense ratio (as well as the related provisions of Rule G-21(e)(ii)(A), G-21(e)(vii) and G-27(d)(ii)) for any advertisement submitted or caused to be submitted for publication, or any advertisement or correspondence otherwise distributed to the public, prior to July 15, 2007.  Dealers are reminded that the amendments to Rules G-21 and G-27 are now fully effective and that any advertisement containing performance data for municipal fund securities submitted or caused to be submitted for publication, or any advertisement or correspondence otherwise distributed to the public, on or after July 15, 2007 must be fully in compliance with these maximum sales load and total annual operating expense ratio disclosure requirements.

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Questions regarding this notice and Rule G-21 may be directed to Ernesto A. Lanza, Senior Associate General Counsel, Jill C. Finder, Associate General Counsel, or Catherine A. Courtney, Assistant General Counsel.

July 16, 2007


[1] A detailed description of the amendments and interpretation is included in MSRB Notice 2007-18 (June 5, 2007).