The Municipal Securities Rulemaking Board (MSRB) has proposed Pay to Play rule for municipal advisors. The rule, which will also cover firms and individuals that solicit certain business from municipal entities on behalf of others, will prohibit advisors from engaging in municipal advisory business with municipal entities for compensation for two years if they make certain political contributions to state or local government officials with authority to hire such municipal advisors.
The advisors will face a two-year ban on compensation for soliciting certain types of business engagements on behalf of others from those governments or receiving compensation for certain earlier solicitations. The rule will require municipal advisor professionals to contribute up to $250 per election to state and local government officials for whom they are entitled to vote.
Click here for the release from PR Newswire.
