The Municipal Securities Rulemaking Board (MSRB) is seeking comment on amendments to MSRB Rule G-23 that will prohibit municipal securities dealers that act as financial advisors on new issues of municipal securities, on either a negotiated or competitive bid basis, from serving as an underwriter for the same issue, the MSRB says. Rule G-23 governs the activities of dealers that act as financial advisors to issuers of municipal securities.
Comments on the proposal are due by September 30. MSRB says that the comments will be considered at the October meeting of the MSRB’s “newly constituted majority public” board of directors.
Securities and Exchange Commission Chairman Mary Schapiro requested that the MSRB reexamine the roles of dealers who act as financial advisors for new issue bonds.