Series 50: Municipal Securities Rulemaking Board (MSRB)

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. 1. Professional qualification