On February 25, the Municipal Securities Rulemaking Board (“MSRB”) proposed new Rule G-44 imposing a supervision and compliance requirements for Municipal Advisors (“MA’s”). The Dodd-Frank Act imposed a new regulatory regime for MA’s. New Rule G-44 imposes requirements familiar from broker-dealer regulation, including:
A supervisory system reasonably designed to assure compliance with applicable laws and regulations;
Written supervisory procedures (“WSP’s”) tailored to a registrant’s business;
Registered principals in supervisory roles; and,
A Chief Compliance Officer having overall responsibility for compliance systems and testing.
MSRB Reg. Notice 2014-04. See also, e.g., FINRA rule 3130. The Comment period closes April 28, 2014.