MSRB NOTICE 2012-32 (JUNE 15, 2012)

REMINDER OF JUNE 16, 2012 EFFECTIVE DATE REGARDING AMENDMENTS TO MSRB RULE G-9 ON PRESERVATION OF RECORDS

The Municipal Securities Rulemaking Board (“MSRB”) reminds brokers, dealers, and municipal securities dealers (“dealers”) that are not banks or subsidiaries or departments or divisions of banks (“bank dealers”) of the June 16, 2012 effective date of amendments to MSRB Rule G-9 that will require all MSRB-registered dealers that are not bank dealers to retain certain records for four years, rather than for three years, so that the Financial Industry Regulatory Authority (“FINRA”), which conducts inspections of its members, will have access to such records when conducting risk-based municipal examinations pursuant to MSRB Rule G-16.[1] 

The MSRB has received inquiries as to whether the amendments to Rule G-9 apply only to records created on or after June 16, 2012.  The rule change pertains to any record that prior to June 16, 2012 was required to be preserved for three years under Rule G-9.  Consequently, any record that was created on or after June 16, 2009 and was required to be retained by Rule G-9 for three years must now be retained for four years. 

Questions about the rule change should be directed to Lawrence P. Sandor, Deputy General Counsel at (703) 797-6600.

June 15, 2012

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Revised Rule G-9: Preservation of Records[2]

(a) No change.

(b) Records to be Preserved for [Three] Four Years.  Every broker, dealer and municipal securities dealer shall preserve the following records for a period of not less than [three] four years; provided, however, that each municipal securities dealer that is a bank or subsidiary or department or division of a bank shall preserve the following records for a period of not less than three years:

(i) - (xvii) No change.

(c) – (f) No change.

(g) Compliance with Rules 17a-3 and 17a-4. Brokers, dealers and municipal securities dealers other than bank dealers that [which] are in compliance with rules 17a-3 and 17a-4 under the Act will be deemed to be in compliance with the requirements of this rule, provided that the records enumerated in section (f) of [r]Rule G-8 of the Board and section (b) of this rule shall in any event be preserved for the applicable time periods specified in this rule.


[2] Underlining indicates additions; brackets indicate deletions.