MSRB Files Proposed Amendments to Rule G-38 with SEC

Today, the Municipal Securities Rulemaking Board (“MSRB”) filed with the Securities and Exchange Commission (“SEC”) proposed amendments to Rule G-38, on consultants.[1]  The proposed amendments delete existing Rule G-38, on consultants, and replace it with new Rule G-38, on solicitation of municipal securities business, which prohibits brokers, dealers and municipal securities dealers (“dealers”) from paying persons who are not affiliated with the dealers for soliciting municipal securities business on their behalf.  For a detailed discussion of the proposed amendments, see MSRB Notice 2005-16 (March 15, 2005).  Questions about the proposed amendments should be directed to Ernesto A. Lanza, Senior Associate General Counsel.

March 17, 2005