On July 27th, the MSRB released for public review and comment a rule proposal with the SEC that would update Rule G‑27, modernize dealer supervision requirements, and reflect current business practices, including hybrid work environments. The proposal is part of the MSRB’s ongoing retrospective rule review. The MSRB notes that technological advances allow firms to supervise municipal securities activities with increased efficacy across decentralized locations. The proposed rules are designed to provide dealers with more flexibility without modifying core supervisory obligations.
The proposed rule would:
- clarify the definition of “structuring” and exclude certain public finance activities
- extend the non‑primary‑residence branch‑office exclusion from 30 to 90 business days
- update the rule’s title with a minor technical revision
Should the SEC adopt the new rule, the MSRB will announce the effective date within 90 days, and that effective date would be no later than one year following SEC approval.
Interested parties and participants may provide feedback related to the rule proposal for a period of 21 days following its publication in the Federal Register. For further information on the rulemaking, including how to submit comment, please see the rule proposal on msrb.org.
Sources:
MSRB Files Amendments to Dealer Supervision Rule with SEC (msrb.org)
Proposed Rule (msrb.org)
