WASHINGTON — The Securities and Exchange Commission has approved the Municipal Securities Rulemaking Board's proposal to consolidate its multiple registration requirements and forms for municipal securities dealers and municipal advisors.
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.
The MSRB has amended its rules to create a simplified electronic registration process under a single rule, MSRB Rule A-12. Creating a single rule and form will allow the board 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 said when it proposed the change in August.
"As part of the MSRB's ongoing effort to enhance regulatory efficiency, the MSRB developed this streamlined registration process to make it easier for municipal securities dealers and municipal advisors to identify, understand and comply with MSRB registration requirements," MSRB executive director Lynnette Kelly said following the SEC's approval on Thursday.
The new rule becomes effective May 12 for all dealers and MAs. Those already registered will have 90 days to complete registration under the new form A-12. The MSRB will provide "additional information and resources" prior to the Aug. 10 deadline to help registrants make the transition, the board said in a release.
The SEC order concluded that the change "helps to remove impediments to dealers and municipal advisors by streamlining the registration process for new registrants and reduce burdens on
registrants who currently must complete multiple forms to register with the MSRB."
The commission received only a single comment letter on the non-controversial proposal; a supportive one from the National Association of Independent Public Finance Advisors.
