Introduction
In 1975 Congress created the Municipal Securities Rulemaking Board (MSRB), the principal regulator of the municipal securities market. Its self-described mission: “protect municipal securities investors, municipal entities, obligated persons, and the public interest.” Like FINRA, the MSRB is not a government body, instead it is a private self-regulatory organization (SRO), and it regulates the activities of broker-dealers and banks that buy, sell, and underwrite municipal securities. Also the MSRB regulates municipal advisor firms and professionals who help state and local governments issue bonds.
In support of its mission to safeguard the municipal securities market, the MSRB establishes rules for municipal securities dealers and municipal advisors. While the MSRB does not enforce its rules—it leaves that to FINRA, the SEC, federal bank regulators, and the IRS who share responsibility for enforcement—the MSRB is responsible for establishing professional qualification standards for municipal securities dealers and municipal advisors. Those standards include rigorous exams for professionals who work in the municipal securities industry.
Individuals who work for municipal securities dealers and want to underwrite, trade, and sell municipal securities must pass the Municipal Securities Representative Qualification Examination, also known as the Series 52 exam. The Series 52 is also required for individuals who work for municipal dealers and want to offer financial advice or consult to issuers of municipal securities, conduct research, and give investment advice on municipal securities, or communicate directly or indirectly with public investors about municipal securities.
If you want to pass the Series 52 you’re going to have to learn about municipal bonds, municipal fund securities, MSRB rules, customer accounts, municipal securities trading, recordkeeping, suitability, settlement and delivery, taxation, federal securities acts,