MSRB gets OK to lengthen terms for board of directors to four years

By Tali Rackner

Norfolk, Va., March 18 – The Municipal Securities Rulemaking Board obtained approval from the Securities and Exchange Commission to lengthen the term of service for members of its board of directors to four years from three, according to a press release.

The board establishes regulatory policies and oversees the operations of the MSRB and has 11 independent public members and 10 members from firms regulated by the MSRB, including broker-dealers, banks and municipal advisors.

Under the amended rule, the 21-member board will be divided into four staggered classes – one class of six members and three classes of five – to ensure consistent and manageable turnover from year to year. Because of this change, instead of selecting seven new board members for the term beginning in fiscal year 2017, the MSRB will select a class of six, the release said.

Board members will be prohibited from serving more than two consecutive terms.

The MSRB is implementing a three-year transition plan during which the board will vote to determine which board members’ terms will be extended by one year. All members beginning a term on the board in fiscal year 2017 or later will serve four-year terms.

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