A municipal advisor is required to disclose conflicts of interest according to which MSRB rule?

The requirement for municipal advisors to disclose conflicts of interest is governed by MSRB Rule G-42. This rule mandates that municipal advisors must provide disclosures regarding conflicts of interest that may affect their advisory activities. It emphasizes the importance of transparency and the obligation of advisors to inform their clients about any potential conflicts that could arise due to the advisor's relationships or financial interests, ensuring that clients make informed decisions based on complete information.

Rule G-42 outlines specific obligations for municipal advisors, including the need to communicate any material conflicts to the client and to manage these conflicts in a manner that prioritizes the client's best interests. This focus on disclosure helps to maintain ethical standards and integrity in the municipal advisory profession, fostering trust between advisors and the municipalities they serve.

In contrast, the other rules do not specifically address the disclosure of conflicts of interest in the context relevant to municipal advisors. Understanding the parameters of G-42 is essential for both compliance and promoting responsible advisory practices within the municipal finance sector.