Municipal Advisor Review - Spring 2015

Municipal Advisor Review - Spring 2015

Upcoming Events

Supervision Webinar 
The MSRB will host a free educational webinar on the supervision and compliance obligations of municipal advisors under MSRB Rule G-44 on Thursday, March 19, 2015 at 3:00 p.m. ET. Register for the webinarRule G-44 and related rule changes are effective April 23, 2015.

Professional Qualification Webinar
The MSRB will host another webinar to provide more information on the municipal advisor professional qualification standards under amended MSRB Rule G-3 on Thursday, April 2, 2015 at 3:00 p.m. ET. Register for the webinarChanges to Rule G-3 are effective April 27, 2015.

See all upcoming rule changes.


Interested in the Pilot Test?

Sign up to receive more information about the process as it becomes available.

MSRB Finalizes Standards for Municipal Advisor Professional Qualification Test

Municipal advisors will soon be required to take and pass a baseline competency exam under new MSRB professional qualification standards approved on February 26, 2015 by the Securities and Exchange Commission (SEC). Revised MSRB Rule G-3 establishes two classifications of municipal advisor professionals—representative and principal—with firms required to designate at least one principal to oversee the municipal advisory activities of the firm. All municipal advisor representatives and principals will be required to take the MSRB’s forthcoming exam to demonstrate knowledge of their regulatory requirements and business activities.

The MSRB has finalized the content outline for the Municipal Advisor Representative Qualification Examination, which will be filed soon with the SEC and made publicly available as a study aid. After administering a pilot exam planned for later this year, the MSRB intends to begin administering the permanent municipal advisor exam in 2016 and will provide a one-year grace period during which individuals will be able to take the test while still engaging in municipal advisory activities. 

Volunteer to Take the Pilot Exam

To inform the passing score for the permanent exam and help determine the final bank of test questions, the MSRB plans to offer municipal advisors the opportunity to take a pilot exam later this year. Taking and passing the pilot exam is equivalent to taking and passing the permanent exam – pilot test-takers who achieve a passing score would not have to retake the exam when it is finalized. Municipal advisors interested in volunteering to take the pilot exam may sign up here to receive details about the process as they become available.

The MSRB will host a webinar to provide more information on the exam and related requirements on April 2, 2015 at 3:00 p.m. ET. Register for the webinar.

Status of Municipal Advisor Rulemaking

As the MSRB’s other regulatory initiatives for municipal advisors move from draft to final form, the MSRB will continue to provide information on their status. The information below is current as of March 5, 2015.

Form A-12 Business Activities: Solicitation of Business

The MSRB has become aware that municipal advisors may be identifying more business activities on Form A-12 than the advisor actually engages in. In particular, the two items identifying solicitation as a business activity should be selected only if the solicitation activity is on behalf of an unaffiliated person or firm. Municipal advisors who solicit only on their own behalf, or on behalf of an affiliate, should not indicate solicitation as a business activity on Form A-12 and if they have done so, should amend Form A-12 as soon as possible.