MSRB Files New MA Pay-to-Play Rule with SEC
On December 16, the Municipal Securities Rulemaking Board ("MSRB") filed with the SEC a proposed rule that would extend to municipal advisers the MSRB's existing rule prohibiting "pay-to-play" practices and restricting campaign contributions in the municipal securities and advisory business. The proposed amendments extend Rule G-37 to municipal advisers and third-party solicitors:
- Imposing a two-year ban on business with municipal entities after any contribution to an issuer official who can influence municipal-advisory business, subject to $250 de minimis exclusion to officials for whom a contributor can vote;
- Prohibiting soliciting, coordinating ("bundling"), and contributions to state/local political parties or bond ballot initiatives - as well as indirect violations;
- Imposing related disclosure and books-and-records requirements.
Tags: burr forman, MSRB, Pay-to-Play Rule, SEC, Securities and Exchange Commission, securities litigation, Securities Litigation & Arbitration
PartnerTom Potter is a Partner in the firm's Nashville office, and his practice focuses on securities, corporate disputes, and appellate litigation. Tom has over 35 years of experience representing business interests.
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