Are Municipal Fund Securities subject to the requirements of MSRB Rules G-36 (official statements) and G-32 (disclosures in connection with new issues)?
Yes. Consistent with the opinion of SEC Division of Market Regulation, the MSRB has stated that dealers acting as underwriters in primary offerings of Municipal Fund Securities generally would be subject to the requirements of G-36 unless such primary offering falls within one of the exemptions stated in Rule 15c2-12. For the purposes of Rule G-32, Municipal Fund Securities sold in a primary offering are considered new issue municipal securities, as long as the underwriting period continues. A dealer effecting transactions in Municipal Fund Securities that are sold during a continuous underwriting period would be required to deliver to the customer the official statement by settlement of each such transaction. If the customer is a repeat purchaser of the securities, no new delivery of the official statement would be required, as long as the customer already received the official statement in connection with a previous purchase and the official statement has not been amended since the c
Related Questions
- Are Municipal Fund Securities subject to the requirements of MSRB Rules G-36 (official statements) and G-32 (disclosures in connection with new issues)?
- Are Municipal Fund Securities subject to the requirements of SEC Rule 15c2-12 (municipal securities disclosure)?
- Are firms that sell Municipal Fund Securities subject to the rules of the MSRB?
