On February 25, the Municipal Securities Rulemaking Board (“MSRB”) proposed new Rule G-44 imposing a supervision and compliance requirements for Municipal Advisors (“MA’s”).  The Dodd-Frank Act imposed a new regulatory regime for MA’s.  New Rule G-44 imposes requirements familiar from broker-dealer regulation, including:

  • A supervisory system reasonably designed to assure compliance with applicable laws and regulations;
  • Written supervisory procedures (“WSP’s”) tailored to a registrant’s business;
  • Registered principals in supervisory roles; and,
  • A Chief Compliance Officer having overall responsibility for compliance systems and testing.

MSRB Reg. Notice 2014-04.  See also, e.g., FINRA rule 3130.  The Comment period closes April 28, 2014.