The Municipal Securities Rulemaking Board (MSRB) is gearing up for its second quarterly meeting of the 2025 fiscal year, scheduled for January 29 and 30, where several significant regulatory initiatives will be discussed. This meeting not only aims to address pressing issues related to municipal securities but also to adapt to the evolving dynamics of the market—particularly in light of changing work patterns that have become prevalent since the COVID-19 pandemic.
One of the focal points of the meeting will be the exploration of simplifying the submission process associated with new issue disclosures. Concurrently, there will be discussions about updating dealer supervisory obligations. With remote working becoming increasingly common, the MSRB has the opportunity to streamline the existing procedures to better align with contemporary operational realities. A notable reference will be to Rule G-32, which governs disclosures in primary market offerings, and Rule G-27, outlining the supervisory duties that dealers must assume when managing their municipal securities businesses.
Interestingly, earlier in May 2024, the MSRB proposed a key amendment to Rule G-27. This would allow certain FINRA-member dealers to conduct remote inspections for their internal compliance obligations temporarily. Set to become operative on July 1, 2024, this amendment corresponds with a similar remote inspections pilot initiative established by FINRA. This change represents a critical shift in operational flexibility for dealers, potentially lessening the burden of onsite inspections while maintaining compliance integrity.
Another significant topic on the agenda is the comprehensive review of the body of rules governing municipal advisors, particularly those introduced following the Dodd-Frank Act. This undertaking acknowledges the need to reassess and refine regulatory frameworks to ensure they remain relevant and effective in today’s market landscape. By engaging in a holistic evaluation, the MSRB aims to enhance regulatory clarity and operational effectiveness across the municipal advisory space.
Additionally, board members will be presented with updates related to ongoing and forthcoming research publications, including the much-anticipated “2024 Municipal Market Year in Review.” This report is fundamental for understanding trends and shifts within the municipal securities sector, providing necessary insights to stakeholders for informed decision-making.
Moreover, the board will be briefed on the modernization of the Electronic Municipal Market Access (EMMA) website, capturing stakeholder feedback received during the first phase of beta testing. This modernization effort is crucial, as it aims to improve user experience and provide robust access to municipal securities market data. The revamped EMMA is anticipated to launch before the close of 2025, reflecting the MSRB’s commitment to enhancing transparency and accessibility.
The MSRB’s upcoming quarterly meeting highlights the organization’s proactive stance toward developing regulations suited for a rapidly changing environment, ensuring that the municipal securities market remains robust and well-regulated. With pertinent changes on the horizon, all stakeholders need to stay informed and engaged with the discussions that shape the future of municipal securities regulation.