WASHINGTON — The Municipal Securities Rulemaking Board has filed a new rule with the Securities and Exchange Commission to implement an annual fee of $300 for each municipal advisor professional that is to be paid by registered municipal advisors.
Under the new Rule A-11, which is effective immediately, beginning with the start of the MSRB's fiscal year 2015 on Oct. 1, each municipal advisor registered with the SEC will be required to pay a recurring annual fee of $300 for each FORM MA-I, filled out by each person providing advisory services and filed with the SEC as of Jan. 31 of the year they are a registered MA. The fee will be due by April 30.
However, the first fees will not become due until the second half of 2014 in parallel with the SEC's phased-in compliance period for the permanent registration of muni advisors, the MSRB said in a notice.
The new rule provides for a transitional MA professional fee that takes into account the phased-in compliance period beginning in the second half of calendar year 2014, established by the SEC for the permanent registration of MAs. The fee will not be charged to MAs not registered with the SEC by Sept. 30, the last day of the MSRB's fiscal year.
"Although these municipal advisors will owe two assessments during the same MSRB fiscal year, this timing of the transitional fee minimizes the administrative burden on municipal advisors by using the filing of Forms MA-I as the basis of the fee, rather than requiring an additional submission, analysis, and categorization of professionals," the board said.
Under the rule, MAs will be charged late fees if they fail to pay their annual fee on a timely basis. The late fees will equal $25 per month for each $300 assessment not paid in full, plus a late fee on the total overdue amount based on the prime rate as provided for in the MSRB registration manual.
The fees will help defray the operational and administrative costs of the MSRB, the board said.
