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


MUNICIPAL SECURITIES RULEMAKING BOARD ISSUES STATEMENT ON
REGULATORY AND ENFORCEMENT ACTIVITIES IN THE MUNICIPAL SECURITIES MARKET

Alexandria, VA - In a speech delivered October 28, 2009, U.S. Securities and Exchange Commissioner Elisse Walter raised a number of important issues in her remarks about the regulatory framework of the municipal securities market.  Among these issues is the split nature of municipal securities rulemaking and enforcement applicable to broker-dealers and to state and federally chartered banks. 

The Municipal Securities Rulemaking Board (MSRB) has previously noted that enforcement is essential to an effective system of municipal regulation and, to that end, has advocated the establishment of more formal processes to coordinate regulatory and enforcement activities in this area among the MSRB, SEC, FINRA, the Federal Reserve Board, the FDIC and the U.S. Treasury. 

Specifically, we recommended in testimony before the Senate Banking Committee earlier this year that Congress modify the MSRB's regulatory authority to include an enforcement and examination support function that would further strengthen enforcement in the municipal securities market.  This would make the MSRB's depth of expertise in all aspects of the municipal market -- found nowhere else in the federal government -- more directly available to support such crucial functions. 

In all of its activities, the MSRB seeks to protect investors and ensure a fair and efficient municipal securities market. We look forward to continuing the dialogue with Commissioner Walter and other interested parties about these issues, including expanded enforcement authority for the MSRB.

 

The Municipal Securities Rulemaking Board (MSRB) protects and strengthens the municipal bond market, enabling access to capital, economic growth, and societal progress in tens of thousands of communities across the country. The MSRB fulfills this mission by creating trust in our market through informed regulation of dealers and municipal advisors that protects investors, issuers and the public interest; building technology systems that power our market and provide transparency for issuers, institutions, and the investing public; and serving as the steward of market data that empowers better decisions and fuels innovation for the future. 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.

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