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SIFMA submitted comments to the MSRB regarding compliance support and guidance procedures. SIFMA emphasized concerns regarding the MSRB's lack of guidance and requested that the regulator improve accessibility for market participants.
In particular, SIFMA made the following recommendations:
- Publish more interpretive guidance. SIFMA contended that recent interpretation relies too heavily on enforcement and examination rather than published guidance. SIFMA called for all rule interpretations to be made public rather than only shared with regulators, and argued that increased transparency will facilitate greater compliance and allow entities to take more preemptive measures. SIFMA also suggested that the MSRB publish an annual list of strategic goals and priorities similar to that published by the SEC and FINRA.
- Publish guidance on required recordkeeping. SIFMA requested that the MSRB work with other regulatory authorities to develop and publish guidance that makes clear recordkeeping requirements that must be satisfied to demonstrate compliance with MSRB rules.
- Increase usefulness of compliance resources. SIFMA recommended that the MSRB make various changes in order to improve its available compliance resources, including (i) careful and consistent consideration of input from the Compliance Advisory Group, (ii) adopting regulatory technologies to reduce costs and streamline data management, (iii) restructuring its website to make information more readily accessible, (iv) developing a public catalog of all MSRB communications, and (v) soliciting and considering questions from industry members in advance of webinars as well as increasing their accessibility.
- Expand participation in industry conferences. SIFMA identified several conferences for the MSRB to consider attending in order to benefit member firms. Participation would assist transactional attorneys in becoming well versed in MSRB rules and practices.
SIFMA's comments were submitted in response to MSRB Notice 2017-22.
Commentary /Steven Lofchie
The desire of the regulated to have the regulator better explain its rules is by no means unique to the MSRB. SIFMA could certainly have made a similar request to FINRA. Notably, new CFPB head Mulvaney has also emphasized the need for the CFPB to do a better job of providing guidance as to its requirements.
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