Municipal Securities Rulemaking Board (MSRB)
The MSRB was established to promote a fair and efficient municipal securities market and conduct rulemaking for the municipal securities industry. It is a self-regulatory organization that is subject to oversight by the SEC.
The MSRB is composed of 21 members knowledgeable about municipal securities markets, each member serving a term of four years.
Eleven members must be public representatives independent of the industry, and they must include at least one of each of the following:
- • An institutional or retail investor in municipal securities
- • A representative of municipal entities
- • A knowledgeable member of the public
Of the ten regulated representatives, reps from at least one non-bank broker-dealer, one bank dealer, and one municipal advisor must be in the mix. The rule further states that not less than 30% of the regulated representatives must be associated with a municipal advisor, which at this writing means that three or more of the regulated reps must be associated with a municipal advisor.
MSRB rules fall into five general categories:
- 1. Professional qualification