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ASA Submits Recommendations to Modernize MSRB

ASA has welcomed some recent efforts by the MSRB to improve its accountability.

WASHINGTON – The American Securities Association (ASA) sent a letter to the Municipal Securities Rulemaking Board (MSRB) outlining recommendations to modernize the MSRB in a way that increases accountability and transparency, while reducing duplicative rules that harm investors and the municipal securities market. ASA’s letter followed a request for comment by the MSRB on its strategic goals and priorities for 2021.

“The ASA has welcomed some recent efforts by the MSRB to improve its accountability,” ASA Head of Government Affairs Kelli McMorrow wrote in the letter. “In particular, the ASA supported the MSRB prioritizing retrospective reviews of existing regulations to guard against rules that may be duplicative, overly burdensome, or no longer meet a cost-benefit test and should be amended or repealed. However, the ASA believes the MSRB can continue to increase its effectiveness by continuing to work with Congress and the Securities and Exchange Commission (SEC) to establish a more transparent and robust governance structure.”

“The ASA has also strongly opposed efforts by the SEC to create a loophole in the municipal market that allows unregulated municipal advisors to engage in the same practices as broker-dealers,” McMorrow wrote in the letter. “Unlike highly regulated broker-dealers, exempted municipal advisors would not be subject to the robust net capital and other regulatory requirements that have long defined the broker-dealer regulatory regime. There is little question that the SEC’s actions left investors in the municipal market vulnerable while doing little to help municipalities around the country raise capital. Again, we believe the MSRB should work closely with the SEC to identify potential weaknesses in the market as a result of orders such as this one and recommend appropriate action to further protect investors.”

“The ASA would also suggest that the MSRB, as well as all regulators, prioritize rule modernization and technology updates that would benefit the industry as many individuals are working from home due to the COVID-19 pandemic.”

To read the full letter to the MSRB, click here.


ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at


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