WASHINGTON — The Municipal Securities Rulemaking Board has published guidance on its new consolidated registration rule for municipal advisors, which the board has said will simplify and streamline the process for newly-regulated MAs.
MSRB rules require firms under its regulatory jurisdiction to register with it and to provide certain identifying and contact information before engaging in municipal securities and advisory activities.
In February, the Securities and Exchange Commission approved the MSRB's proposal to amend its rules to create a simplified electronic registration process under a single Rule A-12. Creating a single rule and form will allow the MSRB to eliminate its Rules A-14 on an annual fee, A-15 on notification to the board of a change in status, name or address, and G-40 on electronic mail contacts, as well as Forms RTRS and G-40, the MSRB has said.
The new registration Form A-12 became available online Monday and must be filled out by all MSRB registrants, including MAs and broker-dealers, by Aug. 10. For firms already registered, the MSRB will pre-populate the form with information from G-40 and RTRS for the Real-Time Transaction Reporting System. Muni advisors must be registered with the SEC prior to filling out form A-12 because the MSRB must have the MA's SEC registration number. "The guidance seeks to clarify that these changes are separate and apart from the Securities and Exchange Commission's transition to a permanent registration regime for municipal advisors," the MSRB said in a statement. The SEC's permanent registration rule takes effect July 1, but firms have already been required to register under a temporary rule.
The MSRB's newly-released guidance addresses "frequently asked questions" about the consolidated registration rule. Firms conducting muni advisory business and registered under the temporary SEC rule must register with the MSRB now, rather than wait for the final SEC rule, the guidance states. Existing MSRB registrants will not be charged a fee for completing or updating the electronic form. But previously unregistered firms will be required to pay the initial and annual fees required of all new MSRB registrants. Only firms must complete the form, not each individual associated with a firm.
The form asks firms to designate employees who serve in various roles, such as primary contacts for regulation and billing. The MSRB guidance clarifies that a single employee can serve a variety of roles.
The consolidated rule was non-controversial: the SEC received only one comment prior to approving the MSRB proposal, a supportive one from the National Association of Independent Public Finance Advisors. Other groups had expressed approval of the effort during the MSRB's comment period.
The MSRB is hosting an educational webinar on Rule A-12 on Thursday. The board has also prepared a new registration manual that is available on the MSRB's website, which contains screen shots of Form A-12 and guides municipal advisors and dealers through the registration process.
