MSRB wants comments on municipal advisors' supervisory structure rule

By Jennifer Chiou

New York, May 25 - The Municipal Securities Rulemaking Board gave notice that it is requesting feedback on a proposed rule that would make municipal advisors to adopt a basic supervisory structure, ensuring compliance with MSRB and Securities and Exchange Commission rules.

Comments are due no later than June 24, according to the notice.

MSRB Rule G-44 would require municipal advisors to establish and maintain a system to oversee municipal advisory activities, the board stated, adding that the rule would set the minimum requirements for this system, including the establishment and maintenance of written procedures.

The board noted that ultimate responsibility for appropriate supervision rests with the municipal advisor.

"As the MSRB puts in place rules for municipal advisors, it is essential that a corresponding supervisory structure be undertaken to ensure that these newly regulated market intermediaries are meeting their duties and obligations," MSRB executive director Lynnette Kelly Hotchkiss said in the notice.

Questions may be directed to Jennifer A. Galloway at 703 797-6600 or jgalloway@msrb.org.

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