Chapter Two Practice Questions
1. A non-solicitor municipal advisor is always expected to do which of the following with respect to the interests of its municipal entity clients?
A. Give the interests of the clients reasonable consideration whenever making a recommendation
B. Treat the interests of its clients on an equal level with the interests of the firm
C. Put the interests of its clients ahead of the interests of the firm
D. Never make a recommendation that might put the interests of a client at risk
2. Which of the following is not included in the MSRB requirements for a municipal advisor supervisory system?
A. Designation of Offices of Supervisory Jurisdiction
B. Production of written supervisory procedures
C. Designation of one or more principals to implement the system
D. Designation of a chief compliance officer
3. Which two of the following actions are required for a municipal advisor to comply with MSRB rules on supervision?
I. Designation of a single chief compliance officer
II. Annual certification of supervisory policies
III. Providing clients with an annual update of supervisory practices
IV. Designation of a principal at each of the firm’s offices to oversee the system
A. I and II
B. I and IV
C. II and III
D. III and IV
4. A municipal advisory firm should designate _____ to implement its supervisory system.
A. One principal
B. One or more principals
C. One associated person or principal
D. One or more associated persons or principals
5. How often must a municipal advisor conduct a compliance review of the firm’s WSPs?
A. Only when specifically asked to do so by the MSRB
B. Monthly
C. Semi-annually
D. Annually
6. A municipal advisor’s WSPs do not need to take which of the following into account?
A. The firm’s size
B. The firm’s organization structure
C. Whether its clients are municipal entities or obligated persons
D. Any disciplinary act