The self-regulating agency for the $2.8 trillion municipal bond market started to flex some Dodd-Frank Act muscle Monday, saying it plans to require municipal advisers to register with it and to extend a "fair-dealing" rule to their activities.
The proposal would require advisers to begin filing with the Municipal Securities Rulemaking Board's between Nov. 15 and Dec. 31. Individuals, except for sole proprietors, would not be required to register.
The proposal also would extend an existing MSRB rule to cover municipal adviser activities by imposing on advisers a duty to deal fairly with all persons and prohibiting deceptive or unfair conduct.
Municipal advisers include many market participants not previously subject to regulation by the MSRB. They also include firms and individuals soliciting business from municipal entities on behalf of unrelated dealers, banks, municipal advisers or investment advisers.