[ by Howard Haykin ]

The MSRB seeks comments on a revised proposal for collecting comprehensive data from dealers that underwrite 529 college savings plans.  The new proposal modifies the timing and scope of information to be collected, so as to enable the MSRB to monitor more effectively the plans’ growth and changes while not creating unnecessary administrative burdens for underwriters.

529 plans are ... investment programs established by states to assist families in saving for future higher education expenses.

Comments to the MSRB are due on or before 12/21/12.

How MSRB Would Use New Data.   The regulatory data would be used to evaluate state plans and the overall 529 plan market in light of its obligation to protect investors in municipal securities.  The proposal would require plan underwriters to:

• provide MSRB with data semiannually, rather than quarterly as previously proposed;
• provide MSRB with report performance data annually, rather than quarterly.

• Additionally, Other changes to the proposal relate to the details to be submitted on 529 plan investments and the effective date of reporting requirements.

The MSRB’s EMMA website displays 529 plan disclosure documents to provide investors with free, electronic access to information to make informed investment decisions.

For further details, go to:   [MSRB Press Release, 11/23/12] and [MSRB Notice 12-59, 12//23/12].