In the next step of the MSRB’s regulatory framework for municipal advisors, it plans to request comment on extending the MSRB’s pay-to-play rule for dealers to include municipal advisors. MSRB Rule G-37 has played a central role in curbing the use of political contributions to secure municipal securities business for two decades. At its April meeting, the MSRB Board agreed that extending these provisions to municipal advisors would help prevent quid pro quo political corruption, and the appearance of it, in public contracting for both dealers and municipal advisors.
In other municipal advisor news, the MSRB is revising its draft Rule G-42 on core standards of conduct for municipal advisors. The revisions seek to clarify and respond to concerns raised by commenters on the rule, including those regarding the treatment of principal transactions. The MSRB will continue to consider the comments received on draft Rule G-42 and will announce next steps soon.