According to Municipal Securities Rulemaking Board (MSRB) rules, if a municipal securities broker-dealer receives an advisory fee from an issuer, it must notify, in writing, any of its customers purchasing bonds issued by that municipality of
The notice would be of any advisory relationship existing between itself and the issuing municipality. This is because if a broker or dealer has had any advisory relationship with a municipality it is an enforced requirement of the MSRB rules that they disclose all of this information to any and all broker/dealer clients who are trying to purchase securities/bonds that have been officially issued by the municipality as in this scenario.
