[Federal Register Volume 59, Number 168 (Wednesday, August 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21473]
[[Page Unknown]]
[Federal Register: August 31, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34603; File No. SR-MSRB-94-15]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Municipal Securities
Rulemaking Board Relating to Interpretation of Rule G-37 on Political
Contributions and Prohibitions on Municipal Securities Business
August 35, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), and Rule 19b-4 thereunder, notice is
hereby given that on August 18, 1994, the Municipal Securities
Rulemaking Board (``Board'' or ``MSRB'') filed with the Securities and
Exchange Commission (``Commission'' or ``SEC'') a proposed rule change
as described in Items I, II, and III below, which Items have been
prepared by the Board. The purpose of the proposed rule change is to
provide interpretative guidance concerning rule G-37 on political
contributions and prohibitions on municipal securities business. The
Board has designated this proposal as constituting a stated policy,
practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule of the Board under
Section 19(b)(3)(A) of the Act, which renders the proposal effective
upon receipt of this filing by the Commission. 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 filing the proposed rule change to provide
interpretative guidance concerning rule G-37 on political contributions
and prohibitions on municipal securities business.\1\
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\1\The Board plans to publish the interpretations in the August
1994 MSRB Reports (Vol. 14, no. 4, pp 27-32). The interpretations
also are available for inspection and copying at the Commission's
public reference room and at the Board.
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II. Self-Regulatory Organization's Statement of the Purpose of and
Statutory Basis for, 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
text of these statements may be examined at the places specified in
Item IV below. The Board has prepared summaries, set forth in Sections
(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
On April 7, 1994, the Commission approved Board rule G-37.
concerning political contributions and prohibitions on municipal
securities business.\2\ In response to numerous inquiries received by
the Board concerning the application of the rule, on May 24, 1994, the
Board filed with the Commission a Question and Answer (``Q&A'')
interpretation of the rule.\3\ Since that time, the Board has continued
to receive questions concerning the rule. Thus, in an effort to further
assist dealers in understanding and complying with rule G-37, the Board
is filing this second Q&A relating to rule G-37. As previously stated,
the Board will continue to monitor the application of rule G-37, and,
from to time, will publish additional notices of interpretations, as
necessary.
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\2\Securities Exchange Act Release No. 33868 (April 7, 1994), 59
FR 17621 (April 13, 1994). The rule applies to contributions made on
and after April 25, 1994.
\3\See Securities Exchange Act Release No. 34161 (June 6, 1994),
59 FR 30379 (June 13, 1994). The interpretations were published in
the June 1994, MSRB Reports.
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The Board believes that the proposed rule change is consistent with
Section 15B(b)(2)(C) of the Act, which provides that the Board's rules
shall be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in municipal securities, to remove
impediments to and perfect the mechanism of a free and open market in
municipal securities, and, in general, to protect investors and the
public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
Because the proposed rule change would apply equally to all
brokers, dealers and municipal securities dealers, 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
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A)(i) of the Act and subparagraph (e) of Rule 19b-4
thereunder because the rule change constitutes a stated policy,
practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule of the Board.
At any time within 60 days of the filing of a rule change pursuant
to Section 19(b)(3)(A) of the Act, the Commission may summarily
abrogate the 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 purposes 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 submission, 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 principal office of the
Board. All submissions should refer to File No. SR-MSRB-94-15 and
should be submitted by September 21, 1994.
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. 94-21473 Filed 8-30-94; 8:45 am]
BILLING CODE 8010-01-M
