The Municipal Securities Rulemaking Board on Monday filed amendments to MSRB Rule G-27 with the Securities and Exchange Commission, a move MSRB Board Chair Natasha Holiday described as "an important step" in the MSRB's continuing efforts "to engage with stakeholders and address requests for greater flexibility and modernization" of the MSRB's dealer supervision regulatory framework.
The filing comes after the MSRB in January published a request for comment seeking input on draft amendments to Rule G-27 on dealer supervision as part of the MSRB's ongoing retrospective rule review of supervisory obligations under the rule given the evolution of the municipal securities marketplace and in workplace practices at dealers since Rule G-27 was last substantially reviewed and revised.
"We thank stakeholders for their feedback throughout this process and recognize that as market practices and workplaces evolve, it is important that MSRB's rules reflect how dealers currently engage in the municipal securities business while still protecting issuers and investors," said Holiday, whose comments were contained in a July 27 MSRB press release.
The proposed rule change the MSRB filed with the SEC Monday would amend Rule G-27 "to (i) exclude certain public finance activities from the term 'structuring of public offerings or private placements' as used within MSRB Rule G-27, (ii) extend the length of the exclusion for non-primary residences from municipal branch office designation, and (iii) make a technical update to the title of MSRB Rule G-27," the filing said.
According to the filing, the proposed rule change would extend an exemption from municipal branch office designation for non-primary residences to up to 90 business days per year from less than 30 business days per year "providing broader latitude to dealers designing their remote or hybrid work policies."
If the SEC approves the proposed rule change, the MSRB will announce the operative date of the proposed rule change in a regulatory notice to be published on the MSRB's website no later than 30 days after the SEC's approval. The compliance date would be no earlier than 90 days and no later than 180 days after the SEC's approval, the filing said.
