MSRB proposes new rules on 529 advertisements

MSRB Notice 2006-26 requests comments on draft amendments relating to Rule G-21 on advertising. The amendments are designed to further harmonize the MSRB's advertising rule with the rules of the SEC and NASD and to provide certain clarifications of and exceptions to existing standards. This notice follows MSRB's notice of interpretive guidance on G-21 issued in May 2006 (MSRB Notice 2006-13).

Among the proposed changes is the requirement that fee information be included whenever performance data appears in an advertisement. Also, the disclosures required for broadcast advertising are modified so that 30-second radio spots, for example, do not require an overwhelming amount of small-print disclosures. Also, the disclosure of tax and other benefits restricted to the purchaser's home-state 529 plan may be deleted when the advertisements are sent only to individuals within the state.

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