Pay-to-Play Rule (G-37) on Agenda for Next MSRB Meeting

On July 22, The Municipal Securities Rulemaking Board (MSRB) will be considering changes to its pay-to-play rule. As part of a regulatory modernization initiative, the MSRB will review Rule G-37, which imposes  pay-to-play rules upon brokers, dealers, municipal securities dealers, or municipal advisors making contributions to officials of state and local government entities. Rule G-37 does this by prohibiting dealers from engaging in municipal securities business and municipal advisors from engaging in municipal advisory business with municipal entities if certain contributions have been made to officials of such municipal entities within the preceding two-year period. It also requires dealers and municipal advisors to disclose certain political contributions and other information. At the meeting, the board will be electing its chair and vice-chair, approving its proposed budget for the upcoming fiscal year, and discussing other rules in addition to the pay-to-play rules, including rules dealing with dealers’ supervisions of personnel and stakeholder engagements on open contractual commitments.

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