Registration with MSRB
Municipal securities dealers and advisors (“dealers”) must also register with the MSRB before engaging in any transactions and advisory activities. A dealer may register by paying an initial fee of $1,000 and submitting the information required on Form A-12.
If a municipal securities firm stops engaging in municipal securities business it must notify the MSRB in writing. If the firm wants to return to municipal securities business, they must pay the initial $1,000 fee again.
Municipal securities dealers and advisors must also pay the MSRB an annual fee of $1,000 for each fiscal year in which they are registered to conduct municipal securities activities. Note that the annual fee is required for each year a firm is registered, even if no municipal securities business is conducted that year. The purpose of the fee is to defray the costs of MSRB communication with firms qualified to conduct municipal securities business. Note that MSRB operations are financed by fees rather than tax collections.
The fee must be received by October 31 of the fiscal year for which it is paid. However, for any dealer that registers and pays their annual registration fee during the month of September, the annual registration fee for the following fiscal year beginning in October is waived.
Should the dealer fail to pay the initial fee, the SEC may suspend or revoke its registration upon the recommendation of the MSRB. In addition, dealers who fail to pay a fee assessed under the registration rules within 30 days of the invoice date may be required to pay a monthly late fee of $25 and a late fee on the overdue balance until paid.
A dealer’s registration with the MSRB becomes effective once the MSRB notifies the dealer that its Form A-12 is complete and its initial and annual fees ha