On Friday, the Securities and Exchange Commission issued a “Risk Alert” intended to encourage better compliance with a Municipal Securities Rulemaking Board (MSRB) rule that limits political contributions by municipal securities professionals to the campaigns of public officials they have done business with, or might do so in the future.
MSRB Rule G-37 generally prohibits firms from engaging in “municipal securities business” with an issuer for two years after any contributions have been made to an official of such issuer by the firm, a municipal finance professional (MFP)associated with the firm, or a political action committee controlled by the firm or an MFP.
