The SEC approved three MSRB rule proposals regarding advertising standards for broker-dealers, municipal securities dealers and municipal advisors.
Existing MSRB Rule G-21, which regulates municipal securities advertisement, will be amended to (i) offer specified content standards for advertisements by broker-dealers or municipal securities dealers, (ii) harmonize regulatory requirements with FINRA for general standards for advertisements, and (iii) codify MSRB interpretive guidance with respect to many of the MSRB's fair practice and fair-dealing obligations that follow from the MSRB's requirements set forth in Rule G-21.
New MSRB Rule G-40 will be adopted, and will specifically relate to advertising by municipal advisors in addressing professional advertisements and requiring principal approval for any advertisements by municipal advisors prior to their initial use. Lastly, existing MSRB Rule G-42 will be changed to incorporate a technical amendment correcting a cross-reference to the term "municipal advisor" defined in Rule G-42.
The proposed rule changes will go into effect on February 7, 2019.
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