New MSRB Customer Complaint and Investor Brochure Rules

The MSRB recently amended its customer complaint and related investor brochure rules (Rule G-10). Registered municipal dealers, broker-dealers, and municipal advisors (“municipal firms”) are now required to keep an electronic log of all written complaints from customers or municipal advisory clients and what action, if any, has been taken by the dealer in connection with those complaints. The record must be retained for six years from the date of the resolution of the complaint.

The record must include:

• the complainant’s name, address, and account number;
• the date the complaint was received;
• the name of any other associated person identified in the complaint;
• a description of the nature of the complaint; and the disposition of the complaint.

New Brochure Rule

To educate customers on the complaint filing process, municipal firms must ensure that all retail and institutional customers receive educational material and information about filing a complaint on a regular basis. Specifically, a firm must provide to each customer, in writing, no less than once each calendar year:

• a statement that it is registered with the MSRB and the SEC,
• the MSRB’s website address, and
• a statement about the availability of a brochure on the MSRB website that describes the investor protections available under MSRB rules and how to file a complaint with an appropriate regulatory authority.

These requirements also apply to firms that offer and sell only municipal fund securities.

Effect on Licensing Exams

These concepts are currently testable on Series 7, Series 50, Series 52, Series 53 and Series 24 regulatory exams.

Thanks for checking for Rule Updates from Knopman Marks Financial Training!