As part of its retrospective review of rules and guidance, the MSRB is requesting feedback on ethical standards and disclosure obligations for financial advisors to the issuers of municipal securities. Comments must be submitted by August 19, 2019.

In particular, the MSRB seeks comment on whether the requirements of MSRB Rule G-23 (Activities of Financial Advisors) reflect current practices in the municipal securities market. The rule, in large part, is intended to minimize the conflict of interest that exists when a dealer acts as an advisor and an underwriter for the same issuance; for example, the rule generally prevents the advisor from also acting as an underwriter or as a remarking agent.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.