The MSRB highlighted significant regulatory and strategic initiatives the agency undertook in 2018.

In its 2018 Annual Report, the MSRB highlighted steps it took to ensure a "fair and efficient municipal securities market." The MSRB:

  • implemented investor protection policies that require dealers to disclose information regarding compensation for certain transactions;
  • implemented a "mark-up disclosure regime" consistent with other fixed-income markets to permit a more "uniform compliance approach and provide clarity for investors";
  • produced various educational materials and provided dealers with guidance relating to establishing the "prevailing market price of a security";
  • conducted a retrospective review of its rules, including rules for dealers on primary offerings, discretionary accounts, advertising and required disclosures;
  • adopted a new advertising rule, MSRB Rule G-40, for municipal advisors that will become effective in 2019;
  • participated in the development of the Securities Industry Essentials exam introduced by FINRA, and accepts the FINRA exam as a "pre-requisite to MSRB representative-level exams and amended its Municipal Securities Representative Exam (Series 52) accordingly";
  • enhanced compliance support to ensure that regulated entities meet foundational rules for municipal advisors and new investor protection rules for dealers;
  • formed a Compliance Advisory Group to "leverage the experience and perspectives of regulated entities in shaping its approach to compliance support";
  • improved the Electronic Municipal Markets Access ("EMMA") website for investors;
  • published a variety of market reports to ensure that "issuers and market professionals are well equipped to make educated and sound financial decisions";
  • increased the annual municipal advisor professional fee to $500 from $300; and
  • agreed to reduce the assessment rates for underwriting, transactions and technology fees pertaining to market activity during the final three months of 2018.

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