ABA praised the Municipal Securities Rulemaking Board for re-proposing Rule G-42 in such a way that “significantly increases the ability of banks to continue to provide services to municipal entities within the scope of the new municipal adviser regulatory regime.” The MSRB was responsive to previous ABA comments, the association said.
ABA sought further clarification of the rule’s scope and asked the MSRB to modify its treatment of principal transactions. ABA also urged the MSRB to allow a sufficient transition period to permit advisers to honor their existing agreements.
In related news, ABA thanked the MSRB for revising its proposed Rule G-44 to acknowledge that bank fiduciary regulatory regimes satisfy the MSRB’s compliance requirements. The board allowed an exemption for banks subject to federal supervision requirements that are substantially similar to Rule G-44.
However, ABA noted that state-chartered trust companies should have an option to demonstrate equivalence between Rule G-44 and their state supervision.
Read the letter on Rule G-42.
Read the letter on Rule G-44.