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The Securities and Alternate Fee issued an order Friday approving the Municipal Securities Rulemaking Board’s proposal for a multi-year charge card for sellers and municipal advisors.
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The MSRB on Sept. 30 filed a proposed rule change with the SEC to amend MSRB Rule A-11, which pertains to assessments for municipal advisor professionals, and MSRB Rule A-13, which pertains to underwriting and transaction assessments for sellers. The multi-year charge card replaces the MSRB’s earlier annual charge card mannequin.
“The SEC’s approval of MSRB’s multi-year charge card displays the vital and intensive stakeholder engagement that went into this course of and reinforces MSRB’s ongoing dedication to accountable and clear fiscal stewardship,” MSRB Board Chair Natasha A. Vacation stated in an MSRB press launch issued Monday.
“This strategy to a multi-year charge card gives higher transparency, much less volatility, and certainty in charges, whereas supporting MSRB’s means to satisfy its statutory mission to guard buyers, issuers and the general public curiosity,” Vacation added.
The multi-year charge card accredited by the SEC “maintains current market exercise payment charges by way of 2029 and contains non permanent credit in 2026 and 2027, lowering the web charges of sure underwriting and transaction charges to be paid by brokers, sellers and municipal securities sellers in these years to return surplus reserves to the trade, whereas additionally establishing a predictable set of municipal advisor skilled charges over the 4 yr interval of the multi-year charge card,” the MSRB’s launch stated.
The accredited charges will go into impact on Jan. 1, 2026.
The MSRB, a self-regulatory group, does not obtain federal appropriations and is funded primarily by way of charges paid by regulated entities. The MSRB established its annual charge card mannequin in 2022.
In November 2023, the MSRB filed with the SEC proposed amendments to MSRB Guidelines A-11 and A-13 to institute charge card charges for 2024. Nonetheless, remark letters submitted to the SEC relating to the 2024 charge card proposal cited considerations “associated to the MSRB’s charge setting processes and the volatility and unpredictability of charges beneath the present charge card mannequin,” the Sept. 30 submitting stated.
After the SEC suspended the MSRB’s 2024 charge card proposal in January 2024, the MSRB withdrew it in February 2024. In October 2024, the MSRB printed a request for info to solicit enter from regulated entities and most people relating to its charge card course of.
“For the explanations outlined under, and particularly the MSRB’s dedication to the continued stakeholder outreach described under, the fee finds that the proposed rule change is according to the provisions of Part 15B(b)(2)(J) of the Alternate Act,” the SEC stated in its Dec. 19 order granting approval of the proposed rule change.
That part of the Securities Alternate Act of 1934 “requires the MSRB’s guidelines to offer that every regulated entity shall pay to the MSRB such affordable charges and expenses as could also be essential or applicable to defray the prices and bills of working and administering the MSRB,” the SEC’s order stated.
“With respect to the proposed multi-year charge card, the fee finds that the proposed charge card charges are applicable to defray the anticipated prices and bills of working and administering the MSRB over the following 4 years,” the SEC’s order stated.
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