MSRB: SEC OKs amended rules for retail order period requirements

By Toni Weeks

San Luis Obispo, Calif., Sept. 27 - The Municipal Securities Rulemaking Board received approval from the Securities and Exchange Commission of amendments to three MSRB rules regarding retail order period requirements, according to an MSRB notice. The amendments become effective on March 31, 2014.

The amendments to MSRB Rule G-8, Rule G-11 and Rule G-32 are intended to protect investors and issuers and provide additional tools to assist with the administration and examinations of retail order period requirements.

The changes are designed to provide a mechanism by which issuers can have greater assurance that a dealer, when directed by an issuer, has made a bona fide public offering of securities to retail customers at initial offering prices.

The rule change addresses concerns raised by issuers, dealers and municipal advisers that (i) orders have been mischaracterized as retail; (ii) syndicate managers fail to give timely notice of the terms and conditions of a retail order period to all dealers, including selling group members; and (iii) requested pricing information is not disclosed early enough to allow requesting dealer's retail customers to determine if they would like to purchase bonds.

According to the notice, the SEC is approving the amendments on an accelerated basis.

© 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.