August 30, 2010 -- The Municipal Securities Rulemaking Board filed proposed rules with the Securities and Exchange Commission to change the membership of the board as required by the Dodd-Frank Act. The law requires that “the number of public representatives of the board shall at all times exceed the total number of regulated representatives and that the membership must be as evenly divided in number as possible between public and regulated representatives.” For the first time, the law gives MSRB authority to write rules governing the conduct of municipal advisors who must be fairly represented on the board. For the public members of the board, the law requires at least one must be representative of institutional or retail investors in municipal securities, at least one must be representative of municipal entities and at least one must be a member of the public with knowledge of or experience in the municipal industry. For regulated representatives, at least one member of the board must be associated with and representative of broker-dealers, at least one must be associated with and representative of bank dealers, and at least one must be associated with a municipal advisor. The plan must be in place by Oct. 1.
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