What does MSRB Rule G-37 restrict?

MSRB Rule G-37 is designed to prevent the influence of political contributions on the selection of underwriters and municipal advisors (MAs) in the municipal securities market. This rule specifically restricts municipal finance professionals, such as underwriters and MAs, from making political contributions to officials who have the power to influence the awarding of municipal finance business. The reasoning behind this restriction is to promote fairness and integrity in the selection process, ensuring that public officials are not influenced by financial incentives when making decisions on municipal contracts.

The rule ensures transparency and helps maintain trust in the municipal securities market by discouraging potential conflicts of interest that could arise from such contributions. By restricting political contributions from underwriters and municipal advisors, the MSRB seeks to safeguard the interests of the public and municipalities in the procurement process.