Kathie O'Donnell

Conners & Co. consented to FINRA's findings without admitting or denying them.

"It's hard to know whether a decrease in enforcement is a statistical blip or early evidence of [a] meeker, milder FINRA in the current era," said Benjamin Edwards, an associate dean at UNLV law school.

The firm violated MSRB Rules G-47 and G-27, FINRA found

"I think generally there is an over-emphasis placed on the takedown at the expense of considering the overall cost of the transaction," Nikolai Sklaroff, capital finance director at the San Francisco Public Utilities Commission, said.

"I would say we were pleasantly surprised that there aren't mandates that are laced in this proposal," GFOA's Emily Brock said.

"My 10 years at Academy Securities building out the municipal platform while mentoring military veterans has been the highlight of my career," Kolman said.

Regulators may be questioning "whether these trading accounts are really institutions or whether they function like an unregistered broker."

"When FINRA and MSRB rules which cover similar functions differ in their application, it raises compliance costs for dealers and raises the risk of inadvertent noncompliance," the Bond Dealers of America said in its letter.

Ed Fierro, a partner at Bracewell, said "making any changes to the rule is a very lengthy process."

The former Massachusetts congressman "was a true champion for the municipal bond market," GFOA's Emily Brock said.

The SEC's reversal "is a very significant change," said Paul Kisslinger, a partner at Barnes & Thornburg.

The SEC is now focused on "quality of cases versus quantity," the SEC chairman said during a discussion held as part of the 2026 FINRA Annual Conference.

"I think any effort to make reporting less frequent is a step backwards in transparency," NFMA's Mary Francoeur said.

"MSRB's strategic plan was shaped by the many conversations we've had with stakeholders from across the municipal securities market," MSRB CEO Mark Kim said.

"Regulatory change in this area is needed without further delay," SIFMA said in a letter.

By harmonizing its gift rule with FINRA's amended gift rule, the MSRB "aims for consistency in the application of MSRB and FINRA rules among dealers that are FINRA members," the MSRB's Ernesto Lanza said. 

The board also approved issuing a request for comment relating to disclosure documents for 529 plans and other municipal fund securities.

"Clearly, issuers still need access to this very important financing tool," said State of Michigan Treasurer Rachael Eubanks, who also serves as this year's president of the National Association of State Treasurers.

"Retiring these terms eliminates unnecessary ambiguities associated with their use in MSRB rules," MSRB Board Vice Chair Wendell Gaertner said.

From Jan. 1, 2020 through mid April of this year, borrowers using conduit issuers accounted 87% of payment defaults by number in the muni market, Municipal Market Analytics' Matt Fabian said.