Appeal body upholds decision to deny exemptive relief under Municipal Securities Rulemaking Board (MSRB) Rule G-37 because, among other things, the firm failed to implement compliance procedures sufficient to educate its employees regarding the provisions of the rule.


February 28, 1997

 

A
Vice President, Legal & Compliance
Firm X
Address

 

RE: MSRB Rule G-37 Exemption Request

 

Dear A:

 

The Fixed Income Committee of NASD Regulation, Inc. has reviewed your appeal for exemptive relief and has determined to deny the request. The Committee found that the firm failed to implement compliance procedures sufficient to educate its municipal finance professionals regarding the particular provisions of the Rule, or otherwise prevent the occurrence of the contributions. Moreover, the Committee noted the MSRB’s guidance that a situation involving a lack of understanding by a municipal finance professional of Rule G-37 or any of its particular provisions is not sufficient to justify the granting of an exemption.

 

Very Truly Yours,

 

 

Alden S. Adkins
General Counsel

 

cc: Christopher A. Taylor, MSRB