Today, the Municipal Securities Rulemaking Board (MSRB) filed an amendment with the Securities and Exchange Commission (SEC) clarifying the two-year look-back ban on contributions from municipal advisors in the upcoming amendments to MSRB Rule G-37.

The amendments, effective August 17, 2016, apply regulatory policies to municipal advisors matching the regulatory policies applicable to dealers under the existing rules. Included in the rules is a two-year look-back provision prohibiting contributions in the two years prior to conducting regulated business.

The MSRB states contributions by persons who become associated with a dealer and become municipal finance professionals of the dealer who are affected by new amendments to Rule G-37 taking effect on August 17, 2016, are subject to the two-year look-back in Rule G-37. Contributions made in the two years prior to the August 17 effective date may subject a dealer to a prohibition on municipal securities business.