WASHINGTON — The Municipal Securities Rulemaking Board plans to propose regulations that would require dealers to disclose more information about contributions to bond-ballot campaigns.
The MSRB made the announcement in a media release in which it reviewed initiatives from its quarterly meeting last week.
The board said it will seek Securities and Exchange Commission approval for rule changes that would require dealers and their municipal finance professionals to disclose the timing of bond-ballot contributions and the identity of the issuer tied to the bond-ballot initiative.
"The award of municipal securities underwriting business tied to dealer contributions to campaigns that secure voter approval for taxpayer-funded public projects can give rise to real or perceived conflicts or related concerns that can adversely affect the integrity of the municipal market," the MSRB said in the release.
More disclosure "is an important step" in determining if a ban on bond-ballot contributions is needed, the board said.
During its meeting, the board also discussed advancing a plan to protect retail investors who trade munis online, and met with top SEC officials to discuss projects related to the commission's July 31 report on the municipal market.
The board also is reviewing "unintended consequences" resulting from a recent interpretive notice to its fair-dealing rule, which requires underwriters make a host of new disclosures to issuers.
