WASHINGTON - Citing a “substantial concern” about the Securities and Exchange Commission’s failure to adopt a permanent municipal advisor definition, the Municipal Securities Rulemaking Board has delayed implementation of a core set of muni advisor rule proposals, the board said Monday.
In a one-page notice posted on the board’s website, the MSRB said it has withdrawn five muni advisor-rule proposals, previously filed with the SEC, including: G-20 on gifts and gratuities, G-37 and G-42 on political contributions, G-36 on fiduciary duty, G-17 on fair dealing, and proposed new Rule A-11 new Form A-11 on muni advisor assessments.
Proposed Rule G-44 on supervision of muni advisor activities was already undergoing revisions and “will not be refiled at this time,” the board’s notice said.
In a statement, the board cited concerns that some individuals and firms might not participate in the comment process because the SEC had not finalized the muni advisor definition.
“We want to make sure that all potential municipal advisors are on notice that they could be affected by our rule proposals and have an opportunity to participate fully in the SEC comment process,” MSRB Executive Director Lynnette Hotchkiss said in a statement.
The MSRB will resubmit these proposals to the SEC when the commission adopts a permanent definition of the term municipal advisor, the MSRB’s notice said.
Hotchkiss has previously said she expected the SEC to finalize the muni advisor registration scheme and definition this fall.
