MSRB files amendments to Rule G-3 with SEC

The Municipal Securities Rulemaking Board has filed proposed amendments to Rule G-3 on professional qualifications with the Securities and Exchange Commission that would add an exemption for municipal advisors currently forced to requalify their registration after a two-year lapse in their Series 50 exams.

The rule amendments make it so that those who have experienced a lapse in qualification can requalify without retaking the test.

The amendments also include an update to Rule G-8 on books and records to establish appropriate obligations to accommodate compliance with the criteria-based exemption.

“The proposed rule change would remove language from Rule G-3 that currently permits the Board, in extraordinary cases, to waive the reexamination requirements for municipal advisor representatives and principals,” the MSRB said in its filing. It would also make certain clarifying amendments to Rule G-3 “to address an interpretive question pertaining to a lapse in qualification for an individual associated with a dually registered firm that is both a dealer and municipal advisor,” the filing said.

The amendments are still being digested but have garnered initial support from municipal advisor groups.

“We look forward to reviewing the filing and expect to support as we did the MSRB’s initial proposal,” said Susan Gaffney, executive director of the National Association of Municipal Advisors. “One area we will focus on and appreciate MSRB’s attention to is how new one-person firms will be able to comply with these changes.”

The board initially sought comment on the proposed amendments following its board meeting in October 2022 and in their filing with the SEC requested the compliance date for the amendments to be no more than 30 days after Commission approval.