Sen. John Kennedy Files Legislation To Protect Consumers By Reforming Municipal Securities Rulemaking Board
Apr 30 2019
WASHINGTON, D.C. – U.S. Sen. John Kennedy (R-La.) filed the MSRB Reform Act today to make changes to the Municipal Securities Rulemaking Board (MSRB) that will benefit consumers across the U.S.
The MSRB is a regulatory organization that oversees the muni bond market which finances airports, roads and other public projects. The 21 person board consists of several public and private representatives raking in exuberant salaries with little oversight from Congress or the SEC. Sen. Kennedy’s legislation aims to make the MSRB less of an insider’s club by requiring a cap on board members’ compensation and placing more distance between the board’s public representatives and their private sector ties.
“The MSRB oversees a municipal securities market that is worth trillions of dollars in public projects. It’s supposed to represent the consumer. Instead, it’s an insider’s club. It’s more incestuous than King Tut’s family,” said Sen. Kennedy. “Public seats on the board shouldn’t be filled by executives who just quit their Wall Street jobs. These reforms are long overdue.”
Specifically, the legislation will:
- Require public representatives to be no less than five years removed from association with a municipal securities broker, dealer or adviser.
- Require the SEC commissioners to confirm new members of the MSRB committee.
- Require the SEC to make a rule to cap compensation for the board within 60 days of the bill’s enactment.