G-37

For two decades, municipal securities dealers have been subject to Municipal Securities Rulemaking Board (“MSRB”) rule G-37 which bars them from receiving state and local business for two years after certain political contributions are made by the dealers and individuals affiliated with them.  Earlier this week, the MSRB advanced amendments to rule G-37 that would…

In an unusual development, the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations has issued a “National Examination Risk Alert” summarizing its findings after pay-to-play compliance examinations conducted by the SEC staff.  The examinations focused on municipal securities dealers that are subject to the Municipal Securities Rulemaking Board’s pay-to-play rule, which is…

While Super PACs and million dollar contributions have dominated the campaign finance headlines this election year, as with every election, there are trends developing just below the surface that the media have yet to focus on clearly.  This year, one of those emerging trends is the increasing bite of so-called “pay to play” laws.  These…

Many state and local jurisdictions allow voters to decide whether the jurisdiction should issue bonds to fund municipal projects.  The Municipal Securities Rulemaking Board (MSRB) is concerned that municipal securities dealers are using political contributions to these bond ballot campaigns to secure business by the issuer of the bonds on the ballot.  Yesterday, the MSRB…