At its quarterly meeting, the Board of Directors of the Municipal Securities Rulemaking Board (MSRB) agreed to ask the Securities and Exchange Commission for approval of its proposed pay-to-play rule for municipal advisors. The proposed rule would require limiting gifts to $100 for municipal advisors giving gifts to employees of entities engaged in municipal securities activities. The new rules for municipal advisors also would prohibit receiving reimbursement of entertainment expenses from the proceeds of an offering of municipal securities.

In an MSRB press release, Board Chair Kym Arnone said, “Two decades ago, the MSRB adopted its landmark pay-to-play rule to address any actual link, and the appearance of a link, between political contributions and municipal securities underwriting, a bold move that dramatically improved the integrity of the market. Extending the well-established principles of this rule to municipal advisors will similarly work to promote the integrity of the market and the municipal advisory industry.” The quarterly meeting was held October 29 – 31, 2014.