The Municipal Securities Rulemaking Board (MSRB) filed a proposal which provides guidance to brokers, dealers and municipal securities dealers of their sales practice obligations under the MSRB rules as applied specifically to individual and other retail investors. Among other things, the proposed rule change updates guidance to dealers on their (i) obligations to disclose material information about issuers, their securities and credit/liquidity support for such securities in connection with the fulfillment of their disclosure obligations, (ii) obligations to use such material information in fulfilling their suitability obligations, and (iii) fair pricing obligations. The proposed rule change also applies previous guidance on bond insurance rating downgrades and wide-scale auction failures for municipal auction rate securities to municipal securities transactions in general and specifically to transactions with individual and other retail investors in variable rate demand obligations. The proposed rule change became effective upon filing with the Securities and Exchange Commission.  

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