MSRB Files Technical Changes With SEC

WASHINGTON — The Municipal Securities Rulemaking Board late Wednesday submitted to the Securities and Exchange Commission technical changes to a handful of its administrative rules that became effective immediately upon filing.

One of the changes to Rule A-3 on membership would prohibit more than one person from the same firm from serving on the MSRB’s 15-member board. The move comes amid unprecedented consolidation of dealers in the industry, and is meant to ensure the MSRB maintains a diverse board.

The board is required to be made up of five representatives of securities firms, five from banks and five public officials, including someone representing issuers and someone representing investors.

Another change, to Rule A-5 on officers and employees of the board, adds language to a section of the rule that says vacancies in board offices should be filled “as soon a practicable” by vote of the board. The new language provides for an election to fill a vacancy if a board member elected to an office becomes unable to take the position prior to the start of his or her term.

In addition, the amendments also revise the language in rules A-3 and A-4 on meetings of the board, and A-5 and A-6 on committees of the board, to replace the word “chairman” with the word “chair,” to ensure gender neutrality.

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