The SEC approved amendments to MSRB Rules G-16 and G-9, necessary for the the establishment of a risk-based compliance examination program for brokers, dealers, and municipal securities dealers (“dealers”) that are members of FINRA.  MSRB Rule G-19 deals with periodic compliance exams;  Rule G-9 deals with preservation of records. Generally speaking, the rule changes will facilitate the modernization of the examination process for dealers, while permitting greater flexibility in the administration of periodic compliance exams in order to focus more closely on those dealers that, by virtue of various risk factors, pose the greatest risk to investors and other market participants, as well as to the municipal securities market on a systemic basis. MSRB Rule G-16, on periodic compliance exams. As amended, Rule G-16 provides that, at least once every 4 calendar years, dealers that are FINRA members will be examined by FINRA to determine whether they are in compliance with applicable MSRB rules and federal securities laws.  This will enable FINRA to examine certain dealers more frequently and other dealers less frequently, depending on their risk and impact to the market. MSRB Rule G-9, on preservation of records. As amended, dealers that are FINRA members must retain certain records for 4 years, rather than for 3 years.  This will ensure that the records are available at those firms that are examined every four calendar years - as now mandated by amended Rule G-16. Effective Dates. Amendments to Rule G-16 are effective as of 12/16/11.  Amendments to Rule G-9 are effective on 6/16/12.  This later start date for G-9 should provide dealers with sufficient time to modify their policies and systems to comply with the new record retention period. MSRB Staff Contacts. Direct questions to:   Lawrence Sandor, Sr. Associate General Counsel - (703) 797-6600. For further details, go to:   MSRB Notice 11-69, 12/19/11].