Series 52: 8.3.1. Municipal Office Designations

8.3.1.  Municipal Office Designations

Office of Municipal Supervisory Jurisdiction (OMSJ). An Office of Municipal Supervisory Jurisdiction is one that demands special supervisory attention, either because the activities conducted there have particular regulatory significance or because the firm itself believes it prudent or necessary based on certain MSRB guidelines.

By MSRB Rule G-27, the execution of any one of the following critical activities requires that an office be designated an OMSJ:

• • Order execution or market making
• • Structuring of public offerings or private placements
• • Maintaining custody of customer funds or securities
• • Final approval of new customer accounts
• • Review and endorsement of customer orders
• • Final approval of advertising or sales literature
• • Supervision of activities of persons at one or more of the member firm’s branch offices

The firm must also designate other offices as OMSJs where:

• • They involve activities that require regular contact with public customers
• • They are geographically remote from another OMSJ or geographically dispersed
• • A substantial number of registered employees conduct securities activities there
• • The securities activities are diverse or complex

OMSJs must be inspected by the firm annually for compliance.

Municipal Branch Offices. A branch office is any location where one or more associated employees are in the bus