MSRB Proposes Simplified Rules on 529 Advertising

The Municipal Securities Rulemaking Board has proposed changes that would simplify 529 college savings plan advertising, Dow Jones reports.

Investment firms would be permitted to run more generic advertisements and supply less dense disclosure information. They also would not have to tell investors that they should consider whether their home state offers tax advantages, if the ad is directed to in-state residents. They could refer investors to telephone numbers and websites where they could obtain more detailed information.

"We certainly hope that it makes it simpler for states to advertise their plans," said Ernesto A. Lanza, senior associate general counsel at the MSRB.

"A lot of people felt the message got lost because of the disclosure," said Jackie Williams, executive director of the Ohio Tuition Trust Authority and chairman of the College Savings Plan Network.