Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) has received approval from the Securities and Exchange Commission (SEC) to consolidate municipal securities dealers’ existing fair-pricing obligations into a single rule, facilitating dealer compliance with a fundamental investor protection regulation. This action is part of a larger, multi-year initiative that the MSRB has underway to review and streamline its Rule Book.
“The MSRB continues to focus on opportunities to further improve our Rule Book to better highlight key principles and support regulatory efficiency and compliance,” said MSRB Executive Director Lynnette Kelly. “Consolidating all fair-pricing rules and interpretations into a single rule is an important step forward in this effort.”
Fair-pricing requirements for dealers with respect to customer transactions currently are contained in three separate MSRB rules, Rule G-30 on prices and commissions, Rule G-18 on execution of transactions, and Rule G-17 on fair dealing, and in various interpretive guidance under Rules G-30 and G-17.
The new, single fair-pricing rule, which requires dealers that transact municipal securities with or on behalf of customers to use a “fair and reasonable” standard for the pricing of the security and for any related commission or service charge, does not make any substantive change to existing dealer pricing obligations. Effective July 7, 2014, all pricing-related obligations will be contained in revised MSRB Rule G-30.
Date: May 12, 2014
Contact: Jennifer A. Galloway, Chief Communications Officer
(703) 797-6600
[email protected]