The Municipal Securities Rulemaking Board will commence its municipal advisor rulemaking and registration activities after 10/1/10 - when the muni-related provisions of Dodd-Frank Reform Act kick in.  MSRB also will transition into a majority independent public board of directors, with municipal advisor representation.  That will happen on 10/1/10.

• Municipal advisors will be required to register with the SEC by 10/1/10;  the MSRB will begin its own registration process following the adoption of associated MSRB administrative rules. 
  

• Upon the seating of its new board of directors, the MSRB will begin working on a broad range of administrative and substantive rules to reflect its broadened investor and municipal entity protection mission under Section 15B of the Securities Exchange Act of 1934, as amended by the Dodd-Frank Act.

No MSRB rules will apply to municipal advisors prior to such rulemaking by the Board, with the exception of B/D's and bank dealers providing financial advisory services to issuers of municipal securities.  Dealer financial advisors are already subject to all MSRB rules.

    Who Are Municipal Advisors?   Municipal advisors include a variety of different types of firms and individuals that provide advice on municipal securities or municipal financial products to state and local governments and other municipal entities, as well as to certain beneficiaries of municipal bond issues – e.g., hospitals, colleges.  Municipal advisors also include firms and individuals that solicit business on behalf of broker-dealers, bank dealers, other municipal advisors or investment advisers from municipal entities - e.g., public pension funds, 529 plans, local government investment pools, other state and local governmental entities or funds. 

The MSRB further notes that, pursuant to amended Section 15B(c)(1) of the Exchange Act, municipal advisors are subject to a federal fiduciary duty to their municipal entity clients as of 10/1/10, even before MSRB rulemaking on the subject.   [MSRB Release, 9/15]