MSRB Amends Municipal Fund Security Advertising Rule

The SEC approved changes by the MSRB to the rule on municipal fund security product advertisements. The changes to MSRB Rule G-21(e) will:

• Conform disclosures regarding money-market fund investment options to recent regulatory developments, including the SEC rule on advertisements for money-market funds;

• Enhance out-of-state disclosure requirements applicable to Rule 529 college savings plans in order to clarify the possible benefits to investors of investing in "home-state" Rule 529 college savings plans;

• Provide clarification concerning the information that must be included in the legend that is required to be added to an advertisement of performance data by a municipal fund security, including disclosures related to past performance and principal value fluctuation; and

• Amend terms in order to promote understanding of the rule.

The MSRB introduced the amendments as part of a greater request for public comments (see previous coverage) on changes to Rules G-21 and G-40. The amendments will become effective on November 18, 2017.