[Federal Register Volume 61, Number 119 (Wednesday, June 19, 1996)]
[Notices]
[Pages 31207-31208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15508]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37304; File No. SR-MSRB-96-5]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change by the Municipal Securities
Rulemaking Board Relating to Preservation of Records
June 11, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on June 4,
1996, the Municipal Securities Rulemaking Board (``Board'' or ``MSRB'')
filed with the Securities and Exchange Commission (``Commission'' or
``SEC'') a proposed rule change (SR-MSRB-96-5). The proposed rule
change is described in Items I and II below, which Items have been
prepared by the Board. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Board is proposing to amend rule G-9, on preservation of
records. The proposed rule change would require that brokers, dealers
and municipal securities dealers (collectively, ``dealers'') retain the
records required by rule G-8(a)(xv) for a period of three years. The
Board requests that the Commission set the effective date for the
proposed rule for 30 days after filing.
II. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
In its filing with the Commission, the Board included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
texts of these statements may be examined at the places specified in
Item IV below. The Board has prepared summaries, set forth in Section
(A), (B), and (C) below, of the most significant aspects of such
statements.
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Among other things, Board rule G-36 requires that, with certain
exceptions, each dealer acting as an underwriter in a primary offering
of municipal securities submit a copy of the final official statement,
if one is prepared, to the Board. Underwriters also are required to
send advance refunding documents to the Board if an offering of
municipal securities ``advance refunds'' an outstanding issue of
municipal securities.
Rule G-8(a)(xv) requires that dealers maintain a record of sending
to the Board, Forms G-36(O/S) and G-36(ARD) and the corresponding
required documentation. Rule G-9, on preservation of records, currently
does not state a time period for preservation of these records.
The proposed amendment to rule G-9 would require that dealers
retain the records required by rule G-8(a)(xv) for a period of three
years. This three-year period would coincide with the record retention
requirement for the documentation supporting proof of delivery of
official statements to purchasers of new issues securities as required
by rule G-32 on disclosures in connection with new issues.
The Board believes the proposed rule change is consistent with
Section 15B(b)(2)(G) of the Act, which requires, in pertinent part,
that the Board's rules:
prescribe records to be made and kept by municipal securities
brokers and municipal securities dealers and the periods for which
such records shall be preserved.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The Board does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (i) does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
(iii) was provided to the Commission for its review at least five days
prior to the filing date; and (iv) does not become operative for thirty
(30) days from the date of its filing, the Board has submitted this
proposed rule change to become effective pursuant to Section
19(b)(3)(A) of the Act and Rule 19b-4(e)(6) thereunder. In particular,
the Board believes that the proposed rule change qualifies as a ``non-
controversial filing'' in that the proposed amendment does not
significantly affect the protection of investors or the public interest
and does not impose any significant burden on competition. At any time
within sixty days of the filing of the proposed rule change, the
Commission may summarily abrogate such rule change if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purpose of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
Copies of the submissions, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying in the
Commission's Public Reference Room. Copies of the filing will also be
available for inspection and copying at the Board's principal offices.
All submissions should refer to File No.
[[Page 31208]]
SR-MSRB-96-5 and should be submitted by July 10, 1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority, 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-15508 Filed 6-18-96; 8:45 am]
BILLING CODE 8010-01-M
