MSRB gets SEC OK to extend application of two rules to muni advisers

By Angela McDaniels

Tacoma, Wash., Dec. 23 - The Municipal Securities Rulemaking Board said the Securities and Exchange Commission approved amendments to Rule G-17, the MSRB's fair practice rule, and Rule G-5 on disciplinary actions by appropriate regulatory agencies, to apply these rules to municipal advisers.

Rule G-17 requires municipal advisers to deal fairly with all persons and to not engage in conduct that is deceptive, dishonest or an unfair practice. The rule already applies to brokers and dealers of municipal securities.

Rule G-5 provides that municipal advisers may not engage in municipal advisory activities in contravention of restrictions imposed upon them by the SEC.

In a notice, the MSRB said its existing interpretive guidance under Rule G-17 does not apply to municipal advisers, but it plans to issue guidance for municipal advisers on their obligations under Rule G-17 in the near future.

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