MSRB Proposes New Suitability Rule

March 14, 2013
Client Alert

The Municipal Securities Rulemaking Board  recently proposed a major revision of MSRB Rule G-19 (Suitability of Recommendations and Transactions). The proposal would harmonize Rule G-19 with the general broker-dealer suitability obligation under Financial Industry Regulatory Authority, Inc. Rule 2111 which became effective in July 2012. The basic suitability obligation in proposed MSRB Rule G-19 essentially mirrors FINRA Rule 2111 but takes a different approach with respect to institutional investor accounts. A copy of the proposed rule marked against FINRA Rule 2111 is included at the end of this Client Alert.

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