The Municipal Securities Rulemaking Board recently released a proposed fiduciary standard for municipal advisers. The standard would prevent banks and their affiliates who are registered municipal advisers from providing any other product or service to that municipality for the duration of the advisory relationship in a principal capacity.
If, for example, a bank’s trust department provides advice to a municipal pension plan, the bank would be prohibited from offering deposits, loans or cash management services to that municipality.
Comments are due by March 10.
Read the MSRB proposal.
View ABA resources on municipal adviser registration.
Read ABA’s staff summary.
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