| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Municipal Securities Rulemaking Board > News item |
MSRB gets SEC OK for rule change related to political contributions
By Lisa Kerner
Charlotte, N.C., Oct. 13 - The Municipal Securities Rulemaking Board's proposed change to Rule G-37 related to political contributions and prohibitions on municipal securities was approved by the Securities and Exchange Commission.
The change provides additional guidance with regard to the potential for affiliated political action committees (PACs) to be viewed as dealer-controlled PACs, according to an SEC news release.
Under Rule G-37, certain contributions to elected officials of municipal securities issuers made by brokers, dealers and municipal securities dealers, municipal finance professionals (MFPs) associated with dealers, and PACs controlled by dealers and their MFPs may prevent dealers from engaging in municipal securities business with such issuers for two years.
MSRB said it sought more guidance on the rule because of changes in the financial markets since the rule was adopted.
Also as the result of recent market turmoil, many dealers have become affiliated with other entities in diverse organizational structures that have formed or maintain relationships with PACs and other political organizations.
These relationships raise concerns about whether the contributions of such affiliated PACs may be used by dealers or their MFPs to circumvent Rule G-37, the release said.
No comment letters were received by the SEC when the proposed rule change was published for comment in the Federal Register on Sept. 9.
Publication of the approved rule change is expected in the Federal Register during the week of Oct. 18. The change is expected to become effective in approximately 60 days.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.