WASHINGTON -- The Municipal Securities Rulemaking Board yesterday formally withdrew a proposed amendment that would have exempted retail sales representatives from its political contributions rule.
The amendment, which was proposed in August and was pending before the Securities and Exchange Commission, had been viewed by the SEC staff and some securities firms as a major loophole to the board's Rule G-37, which is aimed at banning pay-to-play practices.
The board, which decided to drop the amendment at a meeting last Thursday, originally proposed the measure after securities industry officials had said it would be difficult to determine whether retail sales representatives were subject to the rule's restrictions.
Among other pending amendments to the role is one that would clarify that supervisors are subject to the rule if they are "primarily engaged" in municipal securities activities or solicit municipal business.
Another one would require municipal securities firms to disclose all payments, not just their political contributions, to political parties. The board also proposed securities officials designated "municipal finance professionals" must keep that designation for two years after any activity.
