8.2.2.2. MSRB Registration
Besides registering with the SEC, municipal securities dealers and advisers must also register with the MSRB before engaging in any transactions or advisory activities. All non-bank dealers who do business in the securities industry must register with both the SEC and FINRA.
A broker-dealer may register with the MSRB by paying an initial fee of $1,000 and submitting the required information on Form A-12. Should the dealer fail to pay the initial fee, the SEC may suspend or revoke its registration upon the recommendation of the MSRB.
Dealers 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 during the year. The purpose of the fee is to defray the costs of MSRB communication with firms qualified to conduct municipal securities business. 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.
A broker-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 have been received and p