MSRB advances a handful of regulatory initiatives

The Municipal Securities Rulemaking Board has advanced a number of regulatory initiatives including filing proposed amendments with the Securities and Exchange Commission on MSRB Rule G-12 on uniform practice, Rule G-15 on uniform practices for transactions, as well as moving forward with their draft amendments on MSRB Rule G-32 on primary offering disclosures and extending the existing regulatory relief for Rule G-27 on dealer supervision.

All of these decisions were finalized during an MSRB board of directors meeting that took place via video conference this week.

The proposed amendments to G-15 include requirements for dealers to provide pricing reference information on retail customer confirmations and in connection with G-12, changes that facilitate shortening the securities settlement cycle.

The board’s draft amendments to Rule G-32, which it sought comment on in November 2022 and which were warmly received by the market, is moving forward so as to alter the timing and submission of submitted data for underwriters on Form G-32. It also clarifies the rule text.

Underwriters said those changes would reduce compliance burdens on them, while not threatening the protections offered to the issuers and investors that the MSRB is charged by law with protecting.

The MSRB’s board of directors also decided to extend the temporary regulatory relief under Rule G-27 on dealer supervision, which initially began as a result of COVID-19, “to dealers as they implement their long-term hybrid work arrangements reflective of the evolving operational and business models resulting from the sustained coronavirus disease,” the MSRB said.

The board is also working with the SEC and Financial Industry Regulatory authority to consider if and how they need to modernize supervisory rules to better reflect changing work environments. The current regulatory relief began on Jan. 1 and extends to June 30.