MSRB approves amendments to dealer supervision rule

The Municipal Securities Rulemaking Board's quarterly meeting that wrapped up Thursday saw the board approve proposed amendments to an MSRB rule on dealer supervision and greenlight issuing a request for comment relating to disclosure documents for 529 plans and other municipal fund securities.

The board also met with Securities and Exchange Commission Chairman Paul Atkins during the meeting, the MSRB said in a press release Thursday. Held on April 29 and April 30, the meeting was the board's third quarterly meeting of the MSRB's 2026 fiscal year.

"The actions taken by the board to approve proposed rule amendments and issue a request for comment on regulatory initiatives represent a key step in MSRB's ongoing retrospective rule review and modernization," MSRB Chair Natasha Holiday said in the release. "We look forward to continued collaboration with stakeholders as we work together to give America the confidence to invest in its communities."

The board approved proposed amendments to MSRB Rule G-27 on dealer supervision "to extend the annual business day exclusion for non-primary residences from the branch office definition" and to clarify the meaning of the term "structuring of public offerings or private placements," the MSRB's release said.

The amendments would extend the exclusion from less than 30 business days per calendar year to 60 business days or fewer per calendar year.

The board also discussed feedback from the industry regarding possible future steps to further modernize supervisory requirements as well as the status of the Financial Industry Regulatory Authority's remote supervisory pilot program.

Michael Decker, senior vice president for research and public policy at the Bond Dealers of America, said BDA applauds the board's approval of the proposed changes to Rule G-27.

"Any steps in the direction of modernization are welcome," Decker said. "We are particularly encouraged by the board's suggestion that more updates to the supervision regime may be coming."

The MSRB's release said the board approved issuing a request for comment to seek public input on a potential rule change to extend electronic dissemination of primary market disclosure documents under Rule G-32 to 529 plans, ABLE programs and other municipal fund securities.

Also during the meeting, the board discussed public comments regarding proposed amendments to MSRB Rule D-15, the release said. The rule defines the term sophisticated municipal market professional. The draft amendments would modify the asset threshold for a municipal entity to qualify as an SMMP and would exempt investment advisers registered with the SEC from having to make certain affirmations in order to qualify for SMMP status under MSRB rules.

"On Rule D-15, it is disappointing that the board did not move forward with changes to Rule D-15 related to SMMP affirmations for SEC-registered investment advisers," BDA's Decker said. "It is a modest proposal intended to reduce burdens for all involved. We will continue to press the board on this."

Decker also said the MSRB has indicated that a review of its funding mix among regulated entities will be part of its consideration around the next four-year rate card.

"While that was not on the board's agenda for the most recent meeting, we expect it will be in the future," he said.