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

MSRB SEEKS COMMENT ON DISCLOSURE OF PAYMENTS IN CONNECTION
WITH NEW ISSUES OF MUNICIPAL SECURITIES 
 Concept Release Requests Public Input on whether Dealers and Advisors Should Disclose on EMMA®
Any Financial Incentives Given or Received 

Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) today published a concept release seeking comment on a possible proposal to require underwriters and municipal advisors to disclose whether they have made or received certain payments in connection with new issues of municipal securities. 

In the wake of Jefferson County, Alabama, and other situations involving undisclosed financial relationships, concerns have arisen regarding potential conflicts of interest that can impair the ability of municipal market professionals to act fairly and objectively. 

The MSRB is considering whether it should require disclosure through the MSRB’s Electronic Municipal Market Access (EMMA®) website of financial incentives received by underwriters or municipal advisors that may influence their recommendations, as well as payments made by underwriters or municipal advisors to incentivize third parties, including incentives for third parties to steer business toward the underwriter or advisor. The concept proposal is intended to elicit input from the public on potential benefits and burdens of requiring public disclosures of these financial incentives, as well as on potential alternatives, to assist the MSRB in determining whether to publish for further comment a specific rule proposal that would establish such a requirement. 

“The MSRB would appreciate feedback from market participants about whether and how we should take steps to address potential conflicts of interest stemming from undisclosed financial relationships among dealers, advisors and third parties,” said MSRB Executive Director Lynnette Kelly. “This comes at a time when the MSRB is focused on our expanded mandate under the Dodd-Frank Wall Street Reform and Consumer Protection Act to protect state and local government issuers.” 

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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