[ by Howard Haykin ]

The MSRB proposes to expand required disclosures by municipal securities dealers in connection with contributions to bond ballot measure campaigns. The change is intended to assist both the Municipal Securities Rulemaking Board and investors in determining what, if any, impact such contributions have on the integrity of the municipal bond underwriting business.  Comments must be submitted on or before 3/7/13. 

The current requirement calls for dealers to disclose certain contributions to bond ballot campaigns and issuer officials, as well as payments to political parties of states and political subdivisions. 

The change would add bond ballot campaign contributions to the list - along with the municipal securities business engaged in by dealers resulting from the bond ballot measure to which such contributions were given.  This would include:

• full issuer name
• full issue description of any primary offering resulting from voter approval of a bond ballot measure
• timing of such contributions
• the value and nature of the goods or services provided by the dealer to the bond ballot campaign.

MSRB Executive Director Lynnette Kelly had this to say on the proposed rule change:  “More transparency surrounding bond ballot contributions is needed to help the MSRB determine whether such contributions are harming the integrity of the municipal market and whether the MSRB should pursue additional rulemaking in this area to preserve investor confidence in the market.”

[ MSRB News Release, 2/14/13 ]