MSRB asks whether muni dealers should have to disclose affiliated PACs

By Angela McDaniels

Tacoma, Wash., Aug. 25 - The Municipal Securities Rulemaking Board is requesting comments on whether to require municipal securities dealers to disclose the names of their affiliated political action committees to the MSRB for public scrutiny, according to an MSRB notice.

MSRB is interested in whether this disclosure, if required, would provide enough information to allow market participants to access contribution or other relevant information of affiliated PACs available through federal, state and local public disclosure facilities.

In addition, MSRB is seeking input on whether this disclosure should be provided on a quarterly or annual basis and whether there is other pertinent information about affiliated PACs and their contributions that would prove beneficial to the marketplace.

The request for comment follows MSRB's review of industry comments on whether affiliated PAC contributions should be subject to mandatory disclosure requirements.

MSRB noted that it has filed an interpretive notice with the Securities and Exchange Commission that provides guidance on factors that may result in a PAC formed by, or otherwise maintaining a relationship with, an affiliate of a dealer being viewed as controlled by the dealer or a municipal finance professional of the dealer.

Comments should be directed to Leslie Carey, associate general counsel, or Ronald Smith, senior legal associate, no later than Oct. 29.

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