Qualifying Examinations by Employment Category
MSRB Rule G-3 defines the categories of representative, principal, Limited Principal, Sales Principal, and Financial and Operations Principal specific to municipal securities trading.
These personnel must pass the appropriate municipal securities qualification examinations to practice their trade. If an individual fails a qualifying examination, he may retake it after thirty days. If he fails more than twice, he must wait six months to take the exam again.
Municipal Securities Representative. In order to conduct a wide range of municipal securities business, a person must be registered as a Municipal Securities Representative and pass the Series 52 exam and the FINRA Securities Industry Essentials (SIE) exam. The business of a Municipal Securities Representative includes:
- • Underwriting, trading, or sales of municipal securities
- • Financial advisory or consultant services for issuers in connection with the issuance of municipal securities
- • Research or investment advice with respect to municipal securities
- • Any other activities that involve communication, directly or indirectly, with public investors in municipal securities
Municipal Securities Sales Limited Representative. A Municipal Securities Sales Limited Representative is a Municipal Securities Representative whose activities are limited exclusively to sales and purchases of municipal securities by customers. To qualify for this license, a person must have passed the General Securities Representative Examination (Series 7).
Limited Representative—Investment Company and Variable Contracts Products. A Limited Representative of Investment Company and Variable Contracts Products is a Municipal Securities Representative whose activities with respect to municipal securities are limited to purchases and sales for customers of municipal fund securities, such as local government investment pools and 529 educational savings