Document ID: SEC-2010-1763-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Municipal Securities Rulemaking Board
Posted Date: 2010-11-17T05:00Z

[Federal Register Volume 75, Number 221 (Wednesday, November 17, 2010)]
[Notices]
[Pages 70329-70331]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-28982]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63307; File No. SR-MSRB-2010-13]

Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Notice of Filing and Immediate Effectiveness of Amendments to 
Rule A-7, on Assessments, and Rule A-8, on Rulemaking Procedures

November 12, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on November 1, 2010, the Municipal Securities Rulemaking Board 
(``Board'' or ``MSRB''), filed with the Securities and Exchange 
Commission (``SEC'' or ``Commission'') the proposed rule change as 
described in Items I and II below, which Items have been prepared by 
the MSRB. The MSRB has designated the proposed rule change as concerned 
solely with the administration of the Board pursuant to Section 
19(b)(3)(A)(iii) of the Act, and Rule 19b-4(f)(3) thereunder, which 
renders the proposal effective upon filing with the Commission. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The MSRB is filing a proposed rule change consisting of amendments 
to Rule A-7, on assessments, and Rule A-8, on rulemaking procedures, to 
apply existing MSRB mechanisms and procedures for establishing 
assessments and undertaking rulemaking in connection with municipal 
advisors. The proposed rule change would apply to municipal advisors 
effective immediately. The text of the proposed rule change is 
available on the MSRB's Web site at http://www.msrb.org/Rules-and-Interpretations/SEC-Filings/2010-Filings.aspx, at the MSRB's principal 
office, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the MSRB included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements

[[Page 70330]]

may be examined at the places specified in Item IV below. The MSRB has 
prepared summaries, set forth in Sections A, B, and C below, of the 
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purposes of the proposed rule change are: (i) To provide that 
the same procedures that the MSRB uses to engage in rulemaking for 
brokers, dealers, and municipal securities dealers will also apply to 
rulemaking concerning the activities of municipal advisors described in 
Section 15B(e)(4)(i) and (ii) of the Act and (ii) to provide a 
mechanism for the assessment of reasonable fees to defray a portion of 
the increased costs and expenses associated with the operation and 
administration of the Board attributable to the Board's regulation of 
municipal advisors, just as such a mechanism currently exists for 
assessments on brokers, dealers, and municipal securities dealers. 
Although the proposed rule change establishes procedures and mechanisms 
relating to rulemaking and assessments, it does not itself actually 
prescribe any rules for, or impose fees or charges on, municipal 
advisors. Such rules or assessments would be adopted through separate 
rulemaking proposals by the Board pursuant to such procedures and 
mechanisms.
2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with 
Section 15B(b)(2) of the Act, which provides that:

    The Board shall propose and adopt rules to effect the purposes 
of this title with respect to transactions in municipal securities 
effected by brokers, dealers, and municipal securities dealers and 
advice provided to or on behalf of municipal entities or obligated 
persons by brokers, dealers, municipal securities dealers, and 
municipal advisors with respect to municipal financial products, the 
issuance of municipal securities, and solicitations of municipal 
entities or obligated persons undertaken by brokers, dealers, 
municipal securities dealers, and municipal advisors.

    Section 15B(b)(2)(J) of the Act provides that the rules of the MSRB 
shall:

    Provide that each municipal securities broker, municipal 
securities dealer, and municipal advisor shall pay to the Board such 
reasonable fees and charges as may be necessary or appropriate to 
defray the costs and expenses of operating and administering the 
Board.

    The proposed rule change is consistent with Section 15B(b)(2) of 
the Act, because it provides for the procedures that the MSRB shall use 
to engage in rulemaking provided for in Section 15B(b)(2) of the Act 
and a mechanism for the assessment of reasonable fees to defray a 
portion of the increased costs and expenses associated with the 
operation and administration of the Board attributable to the Board's 
regulation of municipal advisors.

    Section 15B(b)(2)(L) of the Act requires that rules adopted by 
the Board not impose a regulatory burden on small municipal advisors 
that is not necessary or appropriate in the public interest and for 
the protection of investors, municipal entities, and obligated 
persons, provided that there is robust protection of investors 
against fraud.

    As noted above, the proposed rule change only authorizes the MSRB 
to engage in rulemaking concerning municipal advisors and to impose 
fees and charges on municipal advisors, in both cases as contemplated 
by the Act. The proposed rule change does not actually prescribe rules 
for, or impose fees or charges on, municipal advisors. Accordingly, the 
proposed rule change imposes no regulatory burden on small advisors.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The MSRB does not believe that the proposed rule change will impose 
any burden on competition not necessary or appropriate in furtherance 
of the purposes of the Act, since it would apply equally to all 
municipal advisors.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The MSRB represented that the proposed rule change qualifies for 
immediate effectiveness pursuant to Section 19(b)(3)(A)(iii) of the Act 
\3\ and Rule 19b-4(f)(3) \4\ thereunder, in that those proposed 
amendments are concerned solely with the administration of the Board. 
At any time within 60 days of the filing of the proposed rule change, 
the Commission summarily may temporarily suspend such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.\5\
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    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(3).
    \5\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-MSRB-2010-13 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE,, 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-MSRB-2010-13. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a,m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of the MSRB. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File

[[Page 70331]]

Number SR-MSRB-2010-13 and should be submitted on or before December 8, 
2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-28982 Filed 11-16-10; 8:45 am]
BILLING CODE 8011-01-P