MSRB reminded brokers, dealers and municipal securities dealers ("dealers") of their investor protection obligations regarding transactions in the municipal securities of distressed municipalities. MSRB Notice 2018-7 summarized the following applicable investor protection rules effecting customer transactions in these securities:

  • time-of-trade disclosure rules;
  • suitability requirements for recommended transactions and investment strategies; and
  • standards for the fair and reasonable pricing of securities.

The MSRB reminder was issued in light of recent instances of substantial price fluctuations.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.