The Municipal Securities Rulemaking Board, or MSRB, held its quarterly Board of Directors meeting, where it completed developing the initial set of core rules of conduct for municipal advisors.

The MSRB approved a plan for effective dates of rule proposals issued earlier this year. Those proposals depend on publication by the SEC of a permanent definition of who is a municipal advisor and is therefore subject to MSRB rules.

At its meeting, the MSRB agreed to publish for public comment a new rule proposal that would require municipal advisors to provide written documentation of their municipal advisor engagements.  The goal is to disclose in the documentation information state and local governments and other municipal entities need to have to make informed decisions, including the basis of compensation, the scope of services, any manageable conflicts of interest and whether any affiliates of the municipal advisor provide advice or services related to the municipal advisor engagements.

The MSRB also approved publishing for public comment an extension of its advertising rule to municipal advisors, which would require advertising by municipal advisors of their skills and services not to be false and not materially misleading.

The MSRB also approved amendments to its proposal to apply its gifts rule to municipal advisors and plans to file the proposal with the SEC in the near future.

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