The MSRB put out for comment new rules for governing municipal adviser marketing and engagement disclosures.  Comments are requested by 9/14/11. The affected rules are:  

• Current Rule G-21, Advertisements. 
• Current Rule G-17, Conduct of Municipal Securities and Municipal Advisory Activities.
• Draft Rule G-46, Municipal Advisory Engagements.

Current MSRB Rules.   MSRB Rule G-21 applies to advertisements by municipal securities dealers.  The MSRB would like to extend this rule so as to cover advertising by municipal advisors.  As proposed, muni advisors would be prohibited from publishing or disseminating ads related to muni securities, muni financial products or 3rd-party services the municipal advisors knows or has reason to know are materially false or misleading.  This would include written or electronic promotional materials - e.g., a circular, report or press release.  

MSRB recognizes that many of the communications municipal advisors have with municipal entities and obligated persons are not advertisements.  It, therefore, also is requesting comment on an interpretive notice under Rule G-17, so as to provide that all written and oral sales or marketing communications and correspondence - e.g., pitch books and responses to RFP's - must not be materially false or misleading. 

Draft MSRB Rule.   MSRB seeks comment on a new rule,  which would require muni advisors to evidence in writing a municipal advisory relationship with a municipal entity client or obligated person client at the time the muni advisor provides advice or agrees to provide advice.  Advisors would be required to include, the following:  (i) basis of compensation;  (ii) disclosures required by the MSRB’s fair dealing and fiduciary duty rules;  (iii) affiliates that will provide advice, services or products related to the municipal advisor engagement; and, (iv) whether the municipal advisor is registered with MSRB and the SEC.  In certain cases, municipal advisors also would be required to disclose those affiliations to investors.

For further details, go to:   [MSRB Press Release, 8/10/11]