[Federal Register Volume 59, Number 112 (Monday, June 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14227]
[[Page Unknown]]
[Federal Register: June 13, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34161; File No. SR-MSRB-94-6]
Self-Regulatory Organizations; Filing and Immediate Effectiveness
of Proposed Rule Change by the Municipal Securities Rulemaking Board
Relating to Interpretation of Rule G-37 on Political Contributions and
Prohibitions on Municipal Securities Business
June 6, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on May 24,
1994, the Municipal Securities Rulemaking Board (``Board'' or ``MSRB'')
filed with the Securities and Exchange Commission (``Commission'') a
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the self-regulatory organization. The
purpose of the proposed rule change is to provide interpretative
guidance concerning rule G-37 on political contributions and
prohibitions on municipal securities business. The Board, pursuant to
Section 19(b)(3)(A) of the Act, filed the proposal as constituting a
stated policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule of the Board. This
renders the proposal effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Board is filing the proposed rule change to provide
interpretative guidance concerning rule G-37 on political contributions
and prohibitions on municipal securities business.\1\
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\1\The Board plans to publish the interpretations in the June
1994, MSRB Reports. The interpretations also are available for
inspection and copying at the Commission's public reference room,
and at the MSRB.
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Board included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The self-regulatory organization has prepared summaries,
set forth in Sections (A), (B), and (C) below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
On April 7, 1994, the Commission approved Board rule G-37,
concerning political contributions and prohibitions on municipal
securities business.\2\ The Board has, and continues to receive,
numerous inquiries concerning the application of the rule. In order to
assist the municipal securities industry and, in particular, brokers,
dealers and municipal securities dealers in understanding and complying
with the provisions of the rule, the Board has determined to publish
this notice of interpretation which provides, in question-and-answer
format, general guidance on rule G-37. The Board will continue to
monitor the application of rule G-37, and, from time to time, will
publish additional notices of interpretations, as necessary.
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\2\Securities Exchange Act Release No. 33868 (April 7, 1994); 59
FR 17621. The rule applies to contributions made on and after April
25, 1994.
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The Board believes that the proposed rule change is consistent with
Section 15B(b)(2)(C) of the Act, which provides that the Board's rules
shall be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in municipal securities, to remove
impediments to and perfect the mechanism of a free and open market in
municipal securities, and, in general, to protect investors and the
public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
Because the proposed rule change would apply equally to all
brokers, dealers and municipal securities dealers, the Board does not
believe that the proposed rule change will impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act and subparagraph (e) of rule 19b-4 thereunder
because the rule change constitutes a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule of the Board. At any time within 60
days of the filing of such rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying in the
commission's Public Reference Room. Copies of the filing will also be
available for inspection and copying at the principal office of the
Board. All submissions should refer to File No. SR-MSRB-94-6 and should
be submitted by July 5, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority, 17 CFR 200.30-3(a)(12).
Jonathan G. Katz,
Secretary.
[FR Doc. 94-14227 Filed 6-10-94; 8:45 am]
BILLING CODE 8010-01-M