1. Proposes to Establish New Nominating Committee.
2. Revises Series 52 Exam Study Outline, Selection Specifications.
3. Extends Certain Core MSRB Rules to Muni Advisors.

    1.  Proposal to Establish New Nominating Committee.   MSRB is proposing to amend Rule a-3, on membership on the Board,  in order to establish a Nominating Committee that complies with MSRB transitional Rule A-3(i), which was established to comply with the Board composition requirements of Section 975 of the Dodd-Frank Reform Act. As proposed, the Nominating Committee would be composed of a majority of public members and will have fair representation of broker-dealers, bank dealers, and municipal advisors, among other things.  As such, MSRB's Nominating and Governance Committee would consist of 11 members - 6 public and 5 industry members.  [MSRB Notice 10-44, Rule Filing 10-17, 11/8]

    2.  Revises Series 52 Exam Study Outline, Selection Specifications.   MSRB filed for immediate effectiveness to increase the length of the examination from 100 to 115 questions, and to make the following changes to the study outline:  (i) regroup certain topics to allow more detailed testing of certain product knowledge and MSRB rules;  (ii) eliminate redundancy;  (iii) delete dated references to certain topics in the current outline;  (iv) provide detail about products covered in the exam;  and, (v) incorporate generic terms instead of proprietary names.  The revised Series 52 exam program will be implemented on 1/3/11.  For further details, click onto:  [ MSRB Notice 10-46, Rule Filing 10-12, 10/26 ]

    3. Extends Certain Core MSRB Rules to Muni Advisors.   MSRB filed for immediate effective several rule changes that extend certain core MSRB rules of conduct to municipal advisors, as well as proposed rule changes that, among other things, will permit municipal advisors to begin registering with the MSRB. 

“Municipal advisors” include businesses and individuals that advise municipal entities concerning municipal financial products and municipal securities, as well as businesses and individuals who solicit certain types of business from municipal entities on behalf of unrelated broker-dealers, municipal advisors, or investment advisers.  Municipal advisors include many market participants not previously subject to regulation by the MSRB, as well as certain brokers, dealers, and municipal securities dealers (“dealers”) whose activities already are subject to MSRB rules. 

Dodd-Frank provides that MSRB rules for municipal advisors must, among other things: (i) promote fair dealing, the prevention of fraudulent and manipulative acts and practices, and the protection of investors, municipal entities, and obligated persons; (ii) prescribe means reasonably designed to prevent acts, practices, and courses of business that are not consistent with a municipal advisor’s fiduciary duty to its municipal entity clients; (iii) prescribe professional standards; (iv) provide CEP requirements; (v) provide for periodic exams;  (vi) provide for recordkeeping and record retention; and (vii) provide for reasonable fees and charges necessary or appropriate to defray the costs and expenses of operating and administering the Board.   MSRB rules may not impose a regulatory burden on small municipal advisors that is not necessary or appropriate in the public interest and for the protection of investors, municipal entities, and obligated persons, provided that there is robust protection of investors against fraud.   For further details, click onto:  [ MSRB Notice 10-47, 11/1 ]