WASHINGTON — The Municipal Securities Rulemaking Board on Tuesday filed a revised proposal with the Securities and Exchange Commission that would require dealers to provide annual municipal securities training for registered persons who regularly conduct or supervise muni business.
The revision tweaks a December 2013 proposal, in which the MSRB requested public comment on draft changes to the board's Rule G-3 on classification of principals and representatives.
The original proposal would have required a minimum of one hour of training focused on municipal securities for professionals whose jobs primarily focus on munis. The MSRB has now modified the requirement to remove the specified one-hour minimum amount of training, and to apply the muni education requirement only to personnel registered with the board.
"The rule change we are filing today responds to issues raised during the public comment process while continuing to address the need for firms to focus on the particular training needs of staff responsible for understanding municipal securities products and complying with all applicable requirements," said MSRB executive director Lynnette Kelly.
Dealer firms are already required to offer continuing education to staff based on a firm's assessment of its needs, but they are not required to ensure that training on municipal securities is provided to dealer personnel regularly engaged in such activities. The MSRB is proposing Jan. 1 as the effective date for the proposed rule change, but it would need to be approved by the SEC first.
