MSRB Files Amendments to Dealer Supervision Rule with SEC

MSRB FILES AMENDMENTS TO DEALER SUPERVISION RULE WITH SEC

Washington, D.C. - The Municipal Securities Rulemaking Board (MSRB) today filed amendments to MSRB Rule G-27 on dealer supervision with the Securities and Exchange Commission (SEC) following MSRB's final quarterly Board meeting of FY2026, where the Board discussed other potential next steps on MSRB dealer supervision initiatives. The filing follows a request for comment, which MSRB published earlier this year as part of its retrospective review of dealer supervisory obligations in response to the evolution of business practices since the rule was last reviewed and revised.

"MSRB's Rule G-27 filing is an important step in our ongoing efforts to engage with stakeholders and address requests for greater flexibility and modernization of the dealer supervision regulatory framework," MSRB Board Chair Natasha Holiday said. "We thank stakeholders for their feedback throughout this process and recognize that as market practices and workplaces evolve, it is important that MSRB's rules reflect how dealers currently engage in the municipal securities business while still protecting issuers and investors."

The proposed amendments filed with the SEC would adopt new supplementary material to:

• Clarify the meaning of the term "structuring of public offerings or private placements" and exclude certain public finance activities from such term as used within MSRB Rule G-27's definition of an office of municipal supervisory jurisdiction.
• Extend the length of the exclusion for non-primary residences from the municipal branch office designation from less than 30 days per calendar year to up to 90 days per calendar year.
• Make a technical update to the title of MSRB Rule G-27.

These proposed amendments would not alter dealers' existing regulatory obligations to establish and maintain reasonably designed supervisory systems, as well as compliance policies and procedures that are effectively implemented, updated, and enforced.

For additional details, read the SEC filing.