Proposed municipal advisor rules on political contributions and supervision will not become effective until the Securities and Exchange Commission finalizes registration rules and defines the term “municipal advisor” later this year, the Municipal Securities Rulemaking Board said Friday.
The board detailed the timetable for implementing several key muni advisor rules — including draft Rule G-42 on political contributions and draft Rule G-44 on supervision — along with a one-page release.
During a phone call with reporters last week, Lynnette Hotchkiss, the board’s executive director, said she expected the SEC to release its final rule and definition in October, November or December at the latest.
Three of the board’s muni advisor rules, proposed Rule G-20 on gifts, Draft Rule G-36 on fiduciary duty, and a Rule G-17 draft interpretive notice on fair dealing for muni advisors, will debut slightly later, on the as-yet-unknown effective date of the SEC’s final registration rule.
“We are committed to keeping municipal advisors informed of our rulemaking initiatives and hope this timetable will serve as a resource for tracking our efforts,” Hotchkiss said in a statement released with the timetable.
The board has floated draft Rules G-42 and G-44 for public comment, but has not yet filed them with the SEC for final approval.
Last week, the MSRB filed two proposals with the SEC, seeking final approval: draft Rule G-20 and a Rule G-17 draft interpretive notice on fair dealing for underwriters.
The SEC will release the board’s rule proposals for additional public comments.
The MSRB said it will update the timetable, which is posted on its website, throughout the rulemaking process.