Series 51: Exceptions To The Rule

Taken from our Series 51 Online Guide

Exceptions to the Rule

The rule carves out an exception for MFPs and non-MFP executives who live in a municipality and are entitled to vote for an official of the municipality. These individuals are allowed to contribute a de minimis amount, up to $250 per election. In contrast, MFPs who do not live in a municipality cannot give any amount if they or their firms wish to conduct municipal securities business with the municipality.

It should also be noted that representatives whose municipal securities activities are limited to retail sales to individual customers are not considered to be municipal finance professionals, and political contributions by these individuals will not trigger the ban.

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Solomon Exam Prep Study Materials for the Series 51
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Example Question

A representative of a dealer who solicits municipal securities business from an official of an issuer contributes $200 to the official’s mayoral reelection campaign during the general election. Under what circumstance would the contribution invoke a ban on the dealer’s municipal securities business with that issuer?