Municipal Securities Act

(LATEST SUMMARY)

Municipal Securities Act - Defines, under the Securities Exchange Act, specified terms relating to municipal securities.

Authorizes the Securities and Exchange Commission to define devices, contrivances, acts and practices deemed manipulative, deceptive, and otherwise fraudulent, and to define quotations deemed to be fictitious, for municipal securities dealers and brokers.

Revises the Commission's administrative powers and the procedures it must follow to sanction the National Association of Securities Dealers, Inc. (NASD).

Establishes a self-regulatory organization for the municipal securities industry designated the Municipal Securities Rulemaking Board. Sets forth the membership composition of the Board. Provides that it will be the function of the Board to prescribe rules for the municipal securities industry subject to Commission approval. Sets forth procedures for SEC review of proposed changes in the rules of the Board. Imposes upon the SEC the responsibility to determine with respect to each such change that the requirements of the Securities Exchange Act are satisfied.

Authorizes the SEC to abrogate, alter, or supplement the rules of the Board in any manner consistent with the purposes of the Securities Exchange Act.

Provides that no municipal securities dealer (other than one registered as a broker or dealer under this Act) shall make use of the mails or of interestate commerce to effect any transaction in any municipal security unless such dealer is registered in accordance with this Act. Prescribes the procedure for such registration and circumstances under which registration shall be denied, revoked, or suspended.