In a letter to Congress, MSRB Chair Nathaniel Singer declared
that the MSRB has "concluded [the] development of a core
regulatory framework for municipal advisors, implementing a regime
mandated by Congress under the Dodd-Frank [Act]." He outlined
education and transparency initiatives that were designed to
implement the MSRB's municipal entity protection mandate.
Mr. Singer detailed foundational rules for municipal advisors,
Rule G-42, establishing core
standards of fiduciary conduct for municipal advisors in their
relationships with clients;
Rule G-3, creating professional
qualifications for municipal advisors;
Rule G-44, establishing supervisory
and compliance obligations for municipal advisor firms; and
Rules G-20 and G-37, which create
common gift-giving standards and restrictions for all municipal
financial professionals and target "pay-to-play"
practices in municipal advisory businesses.
Mr. Singer noted that the MSRB also implemented the first
professional qualifying examination for municipal advisor
representatives, the Municipal Advisor Representative Examination
(Series 50), and a separate qualification exam for municipal
advisor principals that is currently being developed.
He emphasized that:
The $3.7 trillion municipal securities market is vital to
maintaining the nation's infrastructure and is essential to
fostering both local and national economic growth. The MSRB has
made rapid and transparent progress since the enactment of the
Dodd-Frank Act in developing new rules that ensure that all
regulated professionals operating in the municipal market conduct
their work with integrity, fairness and transparency.
Commentary / Steven Lofchie
From a political standpoint, a big question remains: will
municipal issuers and their employees and elected officials be held
to the same standards of liability as private entities and their
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In August 2016, a former risk officer wrote an opinion piece published by the Financial Times explaining his reason for allegedly rejecting a whistleblower award of USD 8.25 million (half of the 16.5 million total).
The SEC recently proposed new Rule 206(4)-4 under the Investment Advisers Act of 1940, which would require registered investment advisers to adopt and implement business continuity and transition plans.
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