MSRB rules

FINRA said the firm failed to detect and resolve short positions in municipal securities

A firm and its two principals have been charged for an improper fee-splitting arrangement under the relatively new regulatory regime for municipal advisors.

The Municipal Securities Rulemaking Board has published its strategic goals for the next four years, which includes the launch of EMMALabs, moving all of its data systems to the cloud and updating its rulemaking guidance.

The proposed changes would reduce the volume of disclosures dealers have to make to customers each year.

The MSRB has announced an extension for municipal bond advisors seeking Series 54 certification, moving the compliance date from to Nov. 30, 2021, from Nov.12.

The trouble stems from a West Virginia tender offer deal Crews & Associates recommended to an issuer.

The board decided last month it would seek commission approval to tweak rules related to mandatory disclosures.

It was a busy quarterly board meeting for the MSRB.

Alleged supervisory failures led to unsuitable trading patterns of Puerto Rico and other bonds, FINRA found.

Ed Sisk, a managing director and head of public finance at Bank of America Merrill Lynch, has been MSRB chair since Oct. 1, 2019.

Current rules require disclosures to customers who probably do not need them, industry lobbying groups argue.

The New York-based firm agreed to be censured, pay the penalty, and remedy alleged problems with its supervisory system.

The dealer group's concern is on the treatment of institutional SMMPs under the suitability standard.

Robert Clarke Brown has joined the Board of Directors for the remainder of the fiscal year.

The proposed changes are part of the MSRB's ongoing retrospective rule review.

The broker exercised discretion in seven customer accounts despite Morgan Stanley no longer allowing discretionary trading.

The MSRB will retire 15 pieces of guidance, though those will still be available online for historical purposes.

The board had planned to abolish the requirement that MAs advising on competitive deals apply for CUSIP numbers, but has now decided to keep the rule as is.

A case settled this week was the first brought in decades by FINRA for a rule violation on quotations.

The agenda includes discussion of possible changes to MSRB Rule G-10, on investor and municipal advisory client education and protection.