[Federal Register Volume 75, Number 221 (Wednesday, November 17, 2010)]
[Notices]
[Pages 70329-70331]
From the Federal Register Online via the Government Publishing 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 [email protected]. 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