Appendix
Summary of Selected MSRB Rules
Appendix: Summary of Selected MSRB Rules
Rule G-2—Municipal Broker-Dealers Must Meet MSRB Qualifications
No municipal securities broker-dealer may trade in or induce the trade of any municipal security unless that person and all associated persons of the broker-dealer are qualified in accordance with MSRB rules. Additionally, no municipal advisor shall engage in municipal advisory activities unless the advisor is similarly qualified.
Rule G-3—Qualification Rules for Associated Persons
This rule defines the categories of principal, Limited Principal, Sales Principal, Financial and Operations Principal, and representative. These personnel must pass their appropriate municipal securities qualification examinations to practice their trade. If they fail the examinations, they may retake them after 30 days. If they fail more than twice, they must wait six months to take the exams again.
Principals and representatives must also participate in a continuing education program having two components: a regulatory element and a firm element. The regulatory element requires all registered persons to complete a computer-based training session within 120 days of the person’s second registration anniversary and every three years thereafter. The firm element must be given annually to all registered personnel who have contact with the public. This annual training covers relevant compliance issues, such as recent regulatory developments and the scope of the member’s business activities.
Rule G-4—Statutory Disqualifications
Municipal securities broker-dealers who have been expelled or suspended from membership in a national securities exchange or securities association or barred or suspended from associating with a member of an exchange or association because of conduct inconsistent with just and equitable principles of trade will not meet MSRB qualifications.
Rule G-7—Information About Associate