On February 28, 2018, the BDA submitted a comment letter to the SEC in response to the MSRB’s proposed new rule, MSRB Rule G-40, on advertising by municipal advisors, and amendments to MSRB Rule G-21, on advertising by municipal securities dealers. You can view our final comment letter here.
BDA’s comment letter focuses on the following topics:
- The BDA disagrees with several aspects of the harmonization of the MSRB Rules and FINRA Rules.
- The BDA does not think MSRB’s inclusion of a principal approval requirement in Rule G-40 makes sense given the context of the municipal advisory relationship.
- The BDA is concerned that correspondence and institutional communication should be exempt from the pre-approval requirements.
- The BDA believes that investor roadshows, responses to RFPs/RFQs and similar materials not intended as advertisements should be excluded from the scope of Rule G-21.
- The BDA does not think MSRB’s prohibition on testimonials in both Rule G-21 and Rule G-40 are warranted.
The SEC filing can be viewed here.
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