Municipal Securities Rulemaking Board (MSRB) Rule G-37
Rule G-37 applies to brokers, dealers, and municipal securities dealers as well as municipal finance professionals and political action committees (PACs) controlled by a dealer or any municipal finance professional. The Rule prohibits a dealer from engaging in municipal securities business, such as underwriting, advising, or providing other financial services to a municipal issuer, within two years after a contribution to an official of that issuing body. Rule G-37 applies to any contribution made by the dealer, a municipal finance professional associated with the dealer, or a PAC controlled by the dealer. The prohibition does not apply if the only contributions to officials of the municipal issuers are made by finance professionals entitled to vote for such officials, and their contributions do not exceed $250 per finance professional to each official of an issuer, per election. An official of the issuer is defined as an incumbent, candidate, or successful candidate for an elective office of a state or political subdivision which can appoint or influence the outcome of the hiring of brokers and dealers for municipal securities business by the issuer.
Securities and Exchange Commission (SEC) Resources
- Rule G-37 Interpretative Notices
- Rule G-37 Interpretative Questions and Answers
- Form G-37
- Instructions for Forms G-37, G-37x, and G-38t