WASHINGTON — Days after the government reopened temporarily, the Municipal Securities Rulemaking Board extended the effective date for new muni advisor rules and amendments.
The original date set was for Feb. 7 for the previously approved amendments to its Rule G-21 on advertising by brokers, dealers or municipal securities dealers and new rule G-40 on advertising by municipal advisors.
Rule G-40 is a milestone because it will formally regulate muni advisor advertising for the first time, requiring among other things that advertisements not be misleading and prohibiting muni advisors from using client testimonials in an advertisement.
The MSRB planned to push back the date since late last year but had to wait for the government to reopen to ask the Securities and Exchange Commission for a new effective date. The board expects to announce the new effective date within the next 60 days.
“The extension is appreciated and needed so that the MSRB can complete its guidance work and MAs can digest those resources, develop appropriate policies and procedure and be able to comply appropriately,” said Susan Gaffney, executive director of the National Association of Municipal Advisors.
The MSRB now has more time to finalize guidance and related rule changes, while dealers and municipal advisors have time to establish and implement policies and procedures with the amendments, MSRB wrote in its press release.
