[Federal Register Volume 83, Number 195 (Tuesday, October 9, 2018)]
[Notices]
[Pages 50708-50713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21782]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84341; File No. SR-MSRB-2018-07]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing of a Proposed Rule Change To Amend MSRB Rule G-
3, on Professional Qualification Requirements, To Require Municipal
Advisor Principals To Become Appropriately Qualified by Passing the
Municipal Advisor Principal Qualification Examination
October 2, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Exchange Act'' or ``Act'') \1\ and Rule 19b-4 thereunder,\2\
notice is hereby given that on September 19, 2018 the Municipal
Securities Rulemaking Board (the ``MSRB'' or ``Board'') filed with the
Securities and Exchange Commission (the ``SEC'' or ``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the MSRB. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The MSRB filed with the Commission a proposed rule change to amend
Rule G-3, on professional qualification requirements, to (i) require
persons who meet the definition of a municipal advisor principal, as
defined under Rule G-3(e)(i), to pass the Municipal Advisor Principal
Qualification Examination (``Series 54 examination'') in order to
become appropriately qualified as a municipal advisor principal; (ii)
specify that such persons who cease to be associated with a municipal
advisor for two or more years at any time after having qualified as a
municipal advisor principal must requalify by examination unless a
waiver is granted; (iii) add the Series 54 examination to the list of
qualification examinations for which a waiver can be sought; (iv)
provide that municipal advisor representatives may function as a
principal for 120 calendar days without being qualified with the Series
54 examination; and (v) make a technical amendment to Rule G-3(e) to
clarify that a municipal advisor principal must pass the Municipal
Advisor Representative Qualification Examination (``Series 50
examination'') as a prerequisite to becoming qualified
[[Page 50709]]
as a municipal advisor principal (collectively the ``proposed rule
change''). The MSRB requests that the proposed rule change become
effective 30 days from the date of SEC approval.
The text of the proposed rule change is available on the MSRB's
website at www.msrb.org/Rules-and-Interpretations/SEC-Filings/2018-Filings.aspx, at the MSRB's principal office, and at the Commission's
Public Reference Room.
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 MSRB 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 MSRB 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
1. Purpose
The MSRB is charged with setting professional qualification
standards for municipal advisors. Section 15B(b)(2)(A) of the Act
authorizes the MSRB to prescribe ``standards of training, experience,
competence, and such other qualifications as the Board finds necessary
or appropriate in the public interest or for the protection of
investors and municipal entities or obligated persons.'' \3\
Additionally, Sections 15B(b)(2)(A)(i) \4\ and 15B(b)(2)(A)(iii) \5\ of
the Act also provide that the Board may appropriately classify
associated persons of dealers and municipal advisors and require
persons in any such class to pass tests prescribed by the Board. The
examinations are intended to determine whether an individual meets the
MSRB's qualification standards for a particular qualification category.
More specifically, the MSRB's professional qualification examinations
measure a candidate's knowledge of the business activities, as well as
the regulatory requirements, including MSRB rules and federal laws.
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\3\ See 15 U.S.C. 78o-4(b)(2)(A).
\4\ See 15 U.S.C. 78o-4(b)(2)(A)(i).
\5\ See 15 U.S.C. 78o-4(b)(2)(A)(iii).
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Background
In connection with its statutory mandate, beginning Spring 2014,
the MSRB set out on a multi-year effort to establish professional
qualification requirements for municipal advisor professionals. The
MSRB published Notice 2014-08 \6\ seeking comment on a proposal to,
among other things, establish qualification classifications for
municipal advisor professionals; and to require that municipal advisor
professionals engaging in municipal advisory activities and those
engaging in the management, direction or supervision of a firm's
municipal advisory activities pass the Municipal Advisor Representative
Qualification Examination (``Series 50 examination'') to be qualified
in accordance with MSRB rules. The MSRB stated at that time, at a later
date, it would consider a qualification examination for municipal
advisor principals.\7\ Also, the MSRB noted, ``[i]f such an examination
is proposed, it is expected that each municipal advisor principal
would, as a prerequisite, be required to pass the municipal advisor
representative qualification examination before taking the municipal
advisor principal qualification examination.'' \8\ On February 26,
2015, among other things, the SEC approved amendments to Rule G-2 to
require that no municipal advisor shall engage in municipal advisory
activities unless such municipal advisor is qualified in accordance
with MSRB rules; and approved Rules G-3(d)(i) and (e)(i) to create two
new qualification classifications for municipal advisors: Municipal
advisor representative \9\ and municipal advisor principal \10\ and to
require persons meeting the definition of a municipal advisor
representative and/or municipal advisor principal to pass the Series 50
examination.\11\ In addition, as amended, each municipal advisor would
be required to designate at least one individual as a municipal advisor
principal who would be responsible for supervising the municipal
advisory activities of the municipal advisor and its associated
persons.\12\
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\6\ See MSRB Notice 2014-08 (Request for Comment on Establishing
Professional Qualification Requirements for Municipal Advisors)
(March 17, 2014).
\7\ Id.
\8\ Id.
\9\ Under Rule G-3(d) a ``municipal advisor representative'' is
defined as ``a natural person associated with a municipal advisor
who engages in municipal advisory activities on the municipal
advisor's behalf, other than a person performing only clerical,
administrative support or similar functions.''
\10\ Under Rule G-3(e) a ``municipal advisor principal'' is
defined as ``a natural person associated with a municipal advisor
who is qualified as a municipal advisor representative and is
directly engaged in the management, direction or supervision of the
municipal advisory activities of the municipal advisor and its
associated persons.''
\11\ See Exchange Act Release No. 74384 (February 26, 2015), 80
FR 11706 (March 4, 2015) (SR-MSRB-2014-08) (Notice of Filing of
Amendment No. 1 and Amendment No. 2 and Order Granting Accelerated
Approval).
\12\ Rule G-44 sets forth the obligation of municipal advisor
principals to supervise the municipal advisory activities of the
municipal advisor and its associated persons to ensure compliance
with applicable securities laws and regulations, including
applicable Board rules.
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In the 2014 filing,\13\ the MSRB addressed the development of a
principal-level examination in response to a commenter's recommendation
\14\ that the MSRB should make a supervisor examination available
before, or simultaneously with the representative examination and
eliminate the need for a supervisor to take both examinations. The MSRB
articulated that it was ``important that the representative examination
be introduced prior to any principal examination because the
[representative] examination would determine the basic competency of
those individuals who are engaged in municipal advisory activity.''
\15\ More importantly, the MSRB noted, and has continued to communicate
to municipal advisor professionals that the MSRB would consider an
examination for principals at a later date.
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\13\ See Exchange Act Release No. 73708 (December 1, 2014), 79
FR 72225 (December 5, 2014) (SR-MSRB-2014-08) (Notice of Filing of a
Proposed Rule Change).
\14\ On March 17, 2014, the MSRB published a request for public
comment on establishing professional qualification requirements for
municipal advisors. See supra note 6. In response, the MSRB received
thirty-five comment letters. One commenter recommended the MSRB make
available a principal-level examination before the representative-
level examination. See Letter from Linda Fan, Managing Partner, Yuba
Group to Ronald Smith, Corporate Secretary, Municipal Securities
Rulemaking Board (April 28, 2014).
\15\ See supra note 13.
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Now that the MSRB has concluded the launch of the Series 50
examination and the one-year grace period has ended \16\ for municipal
advisor representatives and municipal advisor principals to pass the
Series 50 examination while continuing to engage in municipal advisory
activities and the supervision of municipal advisory activities, the
MSRB is in the process of
[[Page 50710]]
formalizing the development of a principal-level examination.
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\16\ The MSRB proposed a one-year grace period for municipal
advisor representatives and municipal advisor principals to satisfy
the qualification requirements pursuant to Rule G-3 in order to
provide an orderly transition to the new qualification requirements.
See supra note 13.
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Proposed Amendments
The MSRB is proposing to adopt Rule G-3(e)(ii)(A) to establish
additional qualification requirements for municipal advisor principals.
Specifically, the proposed amendments would require those who meet the
definition of a municipal advisor principal, as defined under Rule G-
3(e)(i), (i.e., persons engaged in the management, direction or
supervision of the municipal advisory activities of the municipal
advisor and its associated persons) to pass both the Series 50
examination and Series 54 examination prior to becoming qualified as a
municipal advisor principal. Additionally, the proposed amendments to
Rule G-3(e)(ii) would also prescribe that the passing score shall be
determined by the Board. The establishment of qualification
requirements for municipal advisor principals would assist in ensuring
that such persons have a specified level of competency that is
appropriate in the public interest and for the protection of investors,
and municipal entities and obligated persons. Additionally, the
establishment of the Series 54 examination is consistent with the
intent of the establishment of the Series 50 examination ``to mitigate
problems associated with advice provided by those individuals without
adequate training or qualifications,'' in that municipal advisor
principals should be appropriately qualified to supervise such
activities of municipal advisor representatives.\17\
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\17\ See supra note 13.
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Proposed Rule G-3(e)(ii)(B) would require any person qualified as a
municipal advisor principal who ceases to be associated with a
municipal advisor for two or more years at any time after having
qualified as a municipal advisor principal to requalify by examination
by passing both the Series 50 examination and Series 54 examination
prior to becoming qualified as a municipal advisor principal, unless a
waiver is granted pursuant to Rule G-3(h)(ii), on waiver of
qualification requirements.\18\ Accordingly, the MSRB is proposing to
amend Rule G-3(h)(ii) and Supplementary Material .02 to provide that
the MSRB will consider waiving the qualification requirements of a
municipal advisor principal in extraordinary cases where the applicant
was previously qualified as a municipal advisor principal by passing
both the Series 50 examination and Series 54 examination and the
person's qualification lapsed. Proposed Rule G-3(e)(ii)(C) would allow
a municipal advisor principal to be designated a municipal advisor
principal and to function in that capacity for a period of 120 calendar
days without having passed the Series 54 examination.\19\
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\18\ The Board will review waiver requests on their individual
merits, taking into consideration relevant facts presented by an
applicant.
\19\ On June 8, 2018, the MSRB filed a proposed rule change with
the SEC for immediate effectiveness, which, in part, extends the
period from 90 calendar days to 120 calendar days for municipal
securities representatives to function in a principal capacity
without passing a principal examination as long as the municipal
securities representative has at least 18 months of experience
within the five-year period immediately preceding the designation as
a principal. The MSRB is not extending this experience requirement
to a municipal advisor representative in order to function as a
municipal advisor principal for 120 calendar days because, given the
typical size of a municipal advisor firm, coupled with the newness
of the qualification classifications and development of professional
qualification requirements for municipal advisor professionals, such
a requirement could pose an undue burden on a municipal advisor's
operational needs.
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The MSRB is also proposing a technical amendment to Rule G-3(e)(i),
on definitions, to establish as a separate rule provision, and to
clarify, that qualification as a municipal advisor representative is a
prerequisite to obtaining qualification as a municipal advisor
principal. The MSRB is also proposing a technical amendment to renumber
the rule provisions under Rule G-3(e).
A more detailed summary of the Series 54 examination under
development is outlined below.
Development of the Municipal Advisor Principal Qualification
Examination
The MSRB believes that professional qualification examinations,
such as the Series 50 examination and Series 54 examination, are
established means for determining the competency of individuals in a
particular qualification classification. The MSRB has, in consultation
with the MSRB's Professional Qualification Advisory Committee,
developed the Series 54 examination to ensure that a person seeking to
qualify as a municipal advisor principal satisfies a specified level of
competency and knowledge by measuring a candidate's ability to apply
the applicable federal securities laws, including MSRB rules to the
municipal advisory activities of a municipal advisor. The MSRB has
adhered to recognized test development standards by performing a job
study to determine the appropriate topics to be covered and weighting
of such topics on the Series 54 examination.\20\ From October 17, 2017
through November 7, 2017, the MSRB conducted a job study of municipal
advisor principals via a web-based survey. The job study was sent to
the primary and optional regulatory contacts at over 500 municipal
advisors, representing every municipal advisor with at least one person
qualified with the Series 50 examination. The MSRB received 212
responses to the job study, representing data from municipal advisor
principals from different-sized municipal advisors in different areas
of the country.
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\20\ A job study is an assessment of the essential skills that
are required to complete a particular function and is used as a
basis for defining relevant or suitable content for exam questions
and in preparing exam specifications, which refer to the emphasis or
weight given to topic areas within an examination.
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The MSRB will announce the effective date of the permanent Series
54 examination at a later date in an MSRB Notice published on
MSRB.org.\21\ However, in advance of the permanent version of the
Series 54 examination, the MSRB anticipates conducting a pilot of the
Series 54 examination, the results of which will be used to determine
the passing score for the permanent Series 54 examination. Prior to the
launch of the pilot version of the Series 54 examination, the MSRB will
file a content outline with the SEC describing: The topics on the
examination; the percentage of the examination devoted to each topic
area; and the number of questions that will appear on the examination.
The content outline will also contain sample examination questions and
a list of reference materials to assist individuals in preparation for
the examination. To provide persons who function as municipal advisor
principals with sufficient time to satisfy the new qualification
requirement, consistent with the implementation process for the Series
50 examination, the MSRB proposes a one-year grace period from the
effective date of the Series 54 examination for such persons to pass
the examination and become appropriately qualified as municipal advisor
principals. During this one-year grace period, a person functioning as
a municipal advisor principal would be permitted to continue to engage
in the management, direction or supervision of the municipal advisory
activities of the municipal advisor and its associated persons so long
as such person is qualified with the Series 50 examination. This one-
year grace period
[[Page 50711]]
is designed to ensure that those persons functioning as a municipal
advisor principal can prepare for and pass the Series 54 examination
without causing considerable disruption to the business of the
municipal advisor. After the one-year grace period, a municipal advisor
representative would only be permitted to function in the capacity of a
municipal advisor principal, after being so designated, for a period of
120 days without being a qualified municipal advisor principal.
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\21\ The effective date of the Series 54 examination will be the
date the Series 54 examination becomes permanently available.
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Grandfathering
Consistent with the requirement that all municipal advisor
representatives and municipal advisor principals pass the Series 50
examination, the proposed rule change would require those who meet the
definition of a municipal advisor principal, as defined under Rule G-
3(e), to pass the Series 54 examination regardless of whether such
persons have passed other MSRB or MSRB-recognized examinations (such as
the Series 53 or Series 24). The MSRB does not intend to waive the
principal-level requirement or grandfather individuals who have passed
such other examinations or who have experience in functioning in a
supervisory capacity. The MSRB believes that, as consistent with the
professional qualification standards for the municipal advisor
representative-level examination, each municipal advisor principal
should demonstrate a specified level of competency of the regulatory
requirements and application thereof to the municipal advisory
activities of a municipal advisor by passing a principal-level
examination.
2. Statutory Basis
The MSRB believes that the proposed rule change is consistent with
Section 15B(b)(2)(A) of the Act,\22\ which authorizes the MSRB to
prescribe ``standards of training, experience, competence, and such
other qualifications as the Board finds necessary or appropriate in the
public interest or for the protection of investors and municipal
entities or obligated persons'' and Sections 15B(b)(2)(A)(i) \23\ and
15B(b)(2)(A)(iii) \24\ of the Act, which provides that the Board may
appropriately classify associated persons of dealers and municipal
advisors and require persons in any such class to pass tests prescribed
by the Board. Professional qualification examinations are an
established means for demonstrating that municipal advisor
professionals possess the specified level of competency necessary to
engage in or supervise municipal advisory activities. The proposed
amendments to Rule G-3(e) to require municipal advisor principals to
pass the Series 54 examination, and the requirement to pass the Series
50 examination as a prerequisite to the Series 54 examination, is in
furtherance of establishing professional qualification standards. The
MSRB's professional qualification examinations are designed to measure
knowledge of the business activities and the regulatory requirements
under the federal securities laws, including MSRB rules, applicable to
a particular qualification classification, which is in furtherance of
this provision of the Act.
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\22\ 15 U.S.C. 78o-4(b)(2)(A).
\23\ 15 U.S.C. 78o-4(b)(2)(A)(i).
\24\ 15 U.S.C. 78o-4(b)(2)(A)(iii).
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The MSRB also believes the proposed amendments are in accordance
with Section 15B(b)(2)(C) of the Act,\25\ which requires, among other
things, that MSRB rules ``be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, . . . and, in general, to protect investors,
municipal entities, obligated persons, and the public interest . . .''
The MSRB notes that requiring municipal advisor principals to pass the
Series 54 examination will protect investors, municipal entities and
obligated persons by ensuring municipal advisor principals demonstrate
a specified level of competency of the regulatory requirements and
application thereof to the municipal advisor's municipal advisory
activities by passing a principal qualification examination.
Additionally, the proposed rule change furthers the stated objective of
Section 15B(b)(2)(C) of the Act to foster the prevention of fraudulent
practices by enhancing the overall professional qualification standards
of municipal advisor principals--recognizing the important role proper
supervision of a municipal advisor's activities and that of its
associated persons play in the protection of the municipal securities
market.
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\25\ 15 U.S.C. 78o-4(b)(2)(C).
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Additionally, Section 15B(b)(2)(L)(iv) of the Act, requires that
MSRB rules not impose a regulatory burden on small municipal advisors
that is not necessary or appropriate in the public interest and for the
protection of investors, municipal entities, and obligated persons,
provided that there is robust protection of investors against
fraud.\26\ The MSRB believes that the proposed rule change is
consistent with Section 15B(b)(2)(L)(iv) of the Act in that, while the
proposed rule change would affect all municipal advisors, including
small municipal advisors, the regulatory burden that results is
necessary and appropriate in order to establish the specified level of
competence of those individuals engaged in the management, direction or
supervision of the municipal advisory activities of a municipal advisor
and its associated persons. Furthermore, the MSRB believes that
establishing a specified level of competence is necessary for the
protection of investors, municipal entities, and obligated persons in
that such competence promotes compliance with the rules and regulations
governing the conduct of municipal advisors.
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\26\ 15 U.S.C. 78o-4(b)(2)(L)(iv).
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B. Self-Regulatory Organization's Statement on Burden on Competition
Section 15B(b)(2)(C) of the Act \27\ requires that MSRB rules not
be designed to impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act. In determining
whether this standard has been met, the MSRB has been guided by the
Board's adopted policy to more formally integrate economic analysis
into the rulemaking process. In accordance with this policy, the Board
has evaluated the potential impacts of the proposed rule change,
including in comparison to reasonable alternative regulatory
approaches.\28\ The MSRB does not believe that the proposed rule change
would impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The MSRB currently requires any
natural person associated with a municipal advisor who intends to
engage in municipal advisory activities on behalf of the municipal
advisor and those who supervise the municipal advisory activities of
the municipal advisor to pass the Series 50 examination prior to being
qualified as a municipal advisor representative and a municipal advisor
principal, respectively.
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\27\ 15 U.S.C. 78o-4(b)(2)(C).
\28\ Policy on the Use of Economic Analysis in MSRB Rulemaking
is available at http://msrb.org/Rules-and-Interpretations/Economic-Analysis-Policy.aspx. In evaluating whether there was a burden on
competition, the Board was guided by its principles that required
the Board to consider costs and benefits of a rule change, its
impact on capital formation and the main reasonable alternative
regulatory approaches.
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As previously indicated, once the Series 54 examination is
permanently available, a municipal advisor principal will be required
to pass both the Series 50 examination and Series 54 examination prior
to becoming qualified as a municipal advisor principal. The
[[Page 50712]]
Series 54 examination is intended to determine whether a municipal
advisor principal meets a specified level of competency. The main
benefit of the Series 54 examination is to ensure protection of
municipal entities and obligated persons who employ municipal advisors
to engage in municipal advisory activities on their behalf--the
benefits which should accumulate over time. The establishment of the
Series 54 examination as a professional qualification requirement for
municipal advisor principals is in furtherance of the mandate to
protect municipal entities and obligated persons by requiring that
individuals engaged in the management, direction or supervision of the
municipal advisory activities of a municipal advisor and its associated
persons demonstrate a specified level of competence of the rules and
regulations governing such municipal advisory activities. The
establishment of professional qualification standards effectively will
serve to benefit municipal advisors as such standards for municipal
advisor principals are designed to ensure that any person that
supervises, manages or directs the municipal advisory activities of a
municipal advisor and its associated persons understands the
application of the federal securities laws to a municipal advisor's
municipal advisory activities in order to safeguard the municipal
advisor from conduct that would violate the federal securities laws.
The MSRB recognizes that municipal advisors would incur
programmatic costs associated with the proposed Series 54 examination
requirement, including costs to meet standards of training, experience
and competence.\29\ Currently, the number of municipal advisor
professionals who have passed the Series 50 examination and are
associated persons of municipal advisors is about 3,360. Based on the
number of registered municipal advisors and associated persons
currently qualified with the Series 50 examination to act in the
capacity of a municipal advisor principal, the MSRB estimates that 650
persons will likely take the Series 54 examination. The MSRB also
estimates the total costs incurred for taking the examination should be
no more than $715 per each municipal advisor principal.\30\ Therefore,
the estimated total costs to the industry to implement the proposed
Series 54 examination would be around $465,000.
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\29\ As with the Series 50 examination, the costs of preparing
for and taking the proposed Series 54 examination would be incurred
only once for each municipal advisor principal, assuming the
principal passed the examination on the first occasion.
\30\ This total estimated amount includes $265 to take the
examination and $450 to obtain study materials to prepare for the
examination. Based on MSRB's research, the study material/package
prices for the Series 50 examination currently range from $90 to
$450, depending on the vendors. To be conservative, the MSRB chose
the highest amount for the cost estimate to prepare for and take the
proposed Series 54 examination.
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The Act provides that MSRB rules may not impose a regulatory burden
on small municipal advisors that is not necessary or appropriate in the
public interest and for the protection of investors, municipal
entities, and obligated persons provided that there is robust
protection of investors against fraud.\31\ The MSRB is sensitive to the
potential impact the regulatory requirements contained in the proposed
rule change may have on small municipal advisors and recognizes that
the cost of complying with the requirements of the proposed rule change
may be proportionally higher for certain small firms as the incremental
cost associated with the qualification examination requirement may
represent a greater percentage of annual revenues for a small firm. To
avoid potential disruption to a municipal advisor's business
activities, which could impact revenue, the proposed rule change would
provide a one-year grace period for persons to prepare for and pass the
Series 54 examination, thus allowing small municipal advisors the
flexibility to plan around existing and ongoing business engagements.
Furthermore, the cost for a small municipal advisor of having an
associated person prepare for and take the Series 54 examination would
be incurred only once for each municipal advisor principal, assuming
such person(s) passed the examination on the first occasion.
Accordingly, the MSRB believes that the proposed rule change is
consistent with the Act.
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\31\ 15 U.S.C. 78o-4(b)(2)(L)(iv).
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The MSRB has considered whether it is possible that the costs
associated with preparing for and taking the municipal advisor
principal-level qualification examination, could possibly affect the
competitive landscape by leading some municipal advisory firms and
principals to exit the market, curtail their activities or consolidate
with other firms.\32\ However, the market for municipal advisory
services is likely to remain competitive despite the potential exit of
some municipal advisors (including small entity municipal advisors),
consolidation of municipal advisors, or deterrence of new entrants into
the market. A recent study by Bergstresser and Luby (July 2018) on the
landscape of the municipal advisory services in the post Dodd-Frank Act
era found that while the number and types of municipal advisors have
changed over the last few years, the number of municipal advisor
professionals has remained steady.\33\ It appears that municipal
entities and obligated persons are still being serviced by a similar-
sized universe of active municipal advisory professionals even as the
name and location of the firms that they have worked at may have
changed.
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\32\ For example, some municipal advisors may determine to
consolidate with other municipal advisors in order to benefit from
economies of scale rather than to incur separately the costs
associated with the proposed rule change. Others may exit the
market, rather than incurring the cost of preparing for and taking a
qualification examination.
\33\ https://www.brookings.edu/wp-content/uploads/2018/04/Berg-Luby-2018-20180716.pdf.
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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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period of up to 90 days (i) as
the Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-MSRB-2018-07 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.
[[Page 50713]]
All submissions should refer to File Number SR-MSRB-2018-07. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the MSRB. All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-MSRB-2018-07 and should be submitted on
or before October 30, 2018.
For the Commission, pursuant to delegated authority.\34\
Eduardo A. Aleman,
Assistant Secretary.
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\34\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2018-21782 Filed 10-5-18; 8:45 am]
BILLING CODE 8011-01-P