Securities Litigation

The MSRB's Rule G-37 amendments applying pay-to-play prohibitions to Municipal Advisors and their third-party solicitors will become effective August 17, 2016. The proposed amendments extend Rule G-37 to municipal advisers and third-party solicitors:

• Imposing a two-year ban on business with municipal entities after any contribution to an issuer official who can influence municipal-advisory business, subject to $250 de minimis exclusion to officials for whom a contributor can vote;
• Prohibiting soliciting, coordinating ("bundling"), and contributions to state/local political parties or bond ballot initiatives - as well as indirect violations;
• Imposing related disclosure and books-and-records requirements.

The proposed Rules were "deemed approved" February 13 by the SEC's inaction on the last amendments to the proposal filed December 23, 2015 as Release No. 34-76763; File No. SR-MSRB-2015-14. MSRB Reg. Notice 2016-06 (Feb. 17, 2016) is here. Thomas K. Potter, III (tpotter@burr.com) is a partner in the Securities Litigation Practice Group at Burr & Forman, LLP. Tom is licensed in Tennessee, Texas and Louisiana. He has over 30 years' experience representing financial institutions in litigation, regulatory and compliance matters. See attorney profile. © 2016 by Thomas K. Potter, III (all rights reserved).