By Andrea Fox, Gov1 Senior Editor
The Municipal Securities Rulemaking Board is hosting a webinar on Thursday, July 7, 2016 at 3 p.m. EST to help municipalities understand new compliance obligations under the municipal securities pay-to-play rule (MSRB Rule G-37). The new requirements were approved under the Securities and Exchange Act of 1934 on February 13th, and go into effect on August 17th.
The new requirements extend the rule, which securities underwriters and other vendors must follow, to include financial advisors and others with a higher level of fiduciary responsibility to a municipality. The law will now prohibit such advisors from doing business with entities for two years after making political contributions to officials that can influence the municipality’s selection of their business services. The act requires municipalities to identify and evaluate prohibitions related to such contributions and disclose them when they are made.
