Municipal Conduct Rule G-42 Effective June 23
The MSRB's amended Rule G-42 becomes effective June 23, prescribing new conduct standards for municipal advisors and for the underwriters working with them. In advance of the effective date, the MSRB has published interpretive guidance on the new Rule:
For MAs, here. For Underwriters, here. On-demand webinar, here.
Broadly speaking, the amended Rule imposes upon municipal advisors- A fiduciary duty of care and loyalty to municipal entity clients - but only a duty of care to obligated persons (like conduit borrowers);
- A written engagement-letter and conflict-disclosure regime;
- Suitability and know-your-customer obligations; and,
- A list of prohibited practices, including a wide-ranging (but not absolute) ban on principal transactions with municipal entity clients.
Tags: burr forman, MSRB, Municipal Advisor Conduct Rule, Municipal Securities Rulemaking Board, Rule G-42, 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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