Series 50: Historical Background

Historical Background

The term “municipal fund securities” did not exist until recently. In 1999 the MSRB became aware that dealers were selling trust funds held by state or local governmental entities. It reviewed two types of municipal programs, local government pools and higher education savings plan trusts, and asked the SEC for an opinion as to whether these trusts might constitute municipal securities and, if so, be subject to MSRB rules. It wasn’t until 2000 that the MSRB adopted rules that applied to municipal fund securities.

The MSRB defines two kinds of