1.1.4. Municipal Securities Rulemaking Board (MSRB)
The municipal securities rulemaking board (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 15 members knowledgeable about municipal securities markets, each member serving a term of four years.
Eight out of the 15 must be members of the public who are 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
The other seven members of the MSRB must be associated with municipal securities firms, including at least one non-bank broker-dealer, one bank dealer, and two municipal advisors.
MSRB rules fall into five general categories:
1. Professional qualification rules provide operational standards that broker-dealers must