SEC Approves MSRB Amendments To Annual Customer Notification Requirements

The SEC approved an amended MSRB proposal to narrow the scope of the annual customer notification requirements under MSRB rules on delivery of investor brochures and transactions with sophisticated municipal market professionals.

The proposal was amended to clarify that a carrying dealer can be compliant with MSRB Rule G-10(a) ("Delivery of Investor Brochure") on an introducing dealer's behalf without specifying the arrangement in the carrying agreement. (See also previous coverage.) The proposal also includes amendments to MSRB Rule G-48 ("Transactions with Sophisticated Municipal Market Professionals") that except dealers from making such annual notifications to sophisticated municipal market professionals, as long as the required information is available on the dealer's website.

Comments on the approved proposal must be submitted within 21 days of its publication in the Federal Register.

Primary Sources

1. SEC Notice: Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, Consisting of Proposed Amendments to MSRB Rule G-10, on Investor and Municipal Advisory Client Education . . .

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