Simplifying new issue disclosure, dealer supervision among MSRB meeting topics

Ongoing work to potentially simplify the submission process for new issue disclosure and discussion of dealer supervisory obligations given changing work patterns will be among the topics on deck at the Municipal Securities Rulemaking Board's upcoming quarterly board meeting.

The MSRB's board of directors will hold its second quarterly meeting of MSRB's 2025 fiscal year on Jan. 29 and Jan. 30, MSRB said in a Thursday press release, which indicated that the board would discuss regulatory matters and receive updates regarding retrospective rule reviews including reviewsof Rule G-32 and Rule G-27.

Rule G-32 relates to disclosures in connection with primary market offerings. Rule G-27 details requirements for a dealer's supervision of those involved in activities involving municipal securities.

In May 2024, the MSRB published a notice saying that it had filed a proposed rule change with the Securities and Exchange Commission to amend Rule G-27 to permit certain dealers that are members of the Financial Industry Regulatory Authority to fulfill their internal inspection requirements under Rule G-27(d) remotely for a specified period.

The proposed rule change was filed for immediate effectiveness with a July 1, 2024 operative date to align with the operative date of a "FINRA Pilot Program," the notice said.

"The FINRA Pilot Program establishes a voluntary, three-year remote inspections pilot program to allow eligible FINRA-member firms the option to fulfill their inspection obligation of qualified branch offices, including offices of supervisory jurisdiction and non-branch locations remotely, without an onsite visit to such offices or locations, subject to specified terms," the notice said.

Another market regulation topic on deck for discussion will be starting the process of "holistically reviewing the body of municipal advisor rules adopted after the enactment of the Dodd-Frank Act," the MSRB press release said.

Also at the meeting, the board will discuss recent and upcoming research publications including MSRB's 2024 Municipal Market Year in Review, the release said. In addition, the board will also be provided with an update regarding the modernization of the Electronic Municipal Market Access website, including ongoing stakeholder feedback obtained during the first round of 'beta' testing. The newly redesigned EMMA website is expected to be launched prior to the end of 2025, the release said.

Established by Congress in 1975, the MSRB serves as the principal regulator for the roughly $4 trillion municipal securities market. The MSRB is overseen by Congress and the SEC.