Series 54: 2.2.3. Solicitor Vs. Non-Solicitor Municipal Advisors

2.2.3. Solicitor vs. Non-Solicitor Municipal Advisors

For the exam, you should be familiar with the differences between solicitor and non-solicitor municipal advisors. Below is a summary question and answer section to help you review these differences.

What is the difference between a solicitor and non-solicitor municipal advisor?

A solicitor municipal advisor is a firm that solicits municipal entities or obligated persons on behalf of an independent third party and is paid by that third party. A non-solicitor MA is a firm that engages in municipal advisory business with a municipal entity or obligated person and is paid by the entity or obligated person. Recall that a municipal entity can be an agency, authority, or state or local government. It may also be any plan, program, or pool of assets sponsored or established by the state, agency, authority, or local government, or any other issuer of municipal securities. The term “obligated person” is a person who has committed to support some or all of the payments of municipal securities.

Who can be a third party to a solicitor MA?

A third party to a solicitor MA can be a broker-dealer, investment adviser, municipal securities dealer, or municipal advisor, but it cannot be affiliated with the solicitor MA. This means the third party cannot contro