The MSRB released a "Compliance Advisory for Municipal Advisors" ("Advisory"). The Advisory provides guidance for Municipal Advisors on compliance risks for recently implemented rules. Areas of compliance risk identified in the Advisory include the following:
- Failure to adhere to applicable standards of conduct (MSRB Rule G-42), including the duty of loyalty with respect to properly managing conflicts of interest, and the duty of care with respect to the degree of knowledge and expertise required of a municipal advisor when providing advice;
- Failure to adhere to pay-to-play restrictions (MSRB Rule G-37);
- Failure to adhere to restrictions on gifts, gratuities and non-cash compensation (MSRB Rule G-20);
- Failure to ensure that the firm and its associated persons are properly qualified (MSRB Rules G-2, G-3 and A-12);
- Failure to establish an appropriate compliance program (MSRB Rule G-44); and
- Failure to maintain books and records (MSRB Rules G-8 and G-9).
The Advisory also includes various tools that firms may use to strengthen their compliance efforts, including links to external resources and examples of potential violative conduct.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.