SEC approves MSRB rules on 529 marketing
The SEC has approved an interpretative notice on customer protection obligations from the Municipal Securities Rulemaking Board (MSRB) relating to the marketing of 529 college savings plans. See MSRB Notice 2006-16 (June 15, 2006). The new rules go into effect on August 6, 2006. The details are contained in previously-issued MSRB Notice 2006-07 (March 31, 200u6), requiring dealers of 529 plans to provide important disclosures to customers investing in out-of-state 529 plans and to undertake active suitability analyses for recommended transactions in 529 plans based on appropriately weighted factors.
MSRB Notice 2006-16 reminds (warns?) the 529 industry of the importance of providing the investing public with easy access to market-wide information and encouraging the use of existing and future information utilities.
Return to 529 News centerMSRB Notice 2006-16 reminds (warns?) the 529 industry of the importance of providing the investing public with easy access to market-wide information and encouraging the use of existing and future information utilities.