Series 54 Pilot: Solomon Voyage to Municipal Advisor Principal Exam

Solomon Exam Prep is excited to launch the first study guide to the new MSRB Series 54 Municipal Advisor exam.  Continue reading

Solomon Exam Prep is excited to launch the first study guide to the new MSRB Series 54 Municipal Advisor exam. 

According to Jeremy Solomon, president of Solomon Exam Prep, the Series 54 is a new qualifying exam for individuals who supervise or manage the municipal advisory activities of a municipal advisor firm and its associated persons. Individuals interested in taking the Series 54 pilot exam must have passed the Series 50 Municipal Advisor exam.

According to the MSRB, the permanent Series 54 exam will be available in late 2019, at which time individuals functioning in a municipal advisor principal capacity will have one year to take and pass the permanent Series 54. Anyone who passes the pilot Series 54 will qualify as a municipal advisor principal and will not have to take the permanent Series 54.

The Solomon Exam Prep Guide to the Series 54 covers the three functions on the exam:

  • Understanding the Municipal Advisor Regulatory Framework
  • Supervising Municipal Advisory Activities
  • Supervising Municipal Advisor Firm Operations

Enrollment is between March 4-15, 2019 via FINRA’s Test Enrollment Services System.  

Anyone who misses the enrollment period might be “left behind” and not be able to join in this historic municipal securities exam pilot mission!

August Study Question of the Month

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card. Continue reading

Congratulations to Carita W., this month’s Study Question of the Month winner!

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card.

Question

Relevant to the Series 50

 

 

 

 

 

Which of the following would be required to register as a municipal advisor?

I.  A broker-dealer providing advice to a municipal advisor rather than directly to the municipality

II.  An underwriter advising a municipality to meet continuing disclosure requirements for a bond issue for which the underwriter is not engaged

III.  A bank encouraging a municipality to take out a direct loan

IV.  An investment adviser providing advice about investing in municipal derivatives

A. I and IV

B. II and III

C. I and III

D. II and IV

Answer: A.

If a broker-dealer provides advice to a municipal advisor, this is known as indirect advice, and it would require the firm to register as a municipal advisor.  Investment advisers may avoid registering as municipal advisors as long as they avoid providing certain types of advice, including advice about municipal derivatives.

An underwriter is not required to register if it encourages a municipality to meet continuing disclosure requirements, even if the continuing disclosure is for a bond issue for which the underwriter was not engaged.

Banks are exempt from the definition of municipal advisor as long as they restrict their advice to certain topics, including extensions of credit by the bank to a municipal entity.

July Study Question of the Month

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card. Continue reading

Congratulations to Terry F., this month’s Study Question of the Month winner!

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card.

Question
Relevant to the Series 6Series 7Series 65Series 66

 

 

 

 

 

Which of the following is true of UGMA/UTMA accounts?

I. Only family members may contribute to a UGMA/UTMA
II. Annual contribution limit of $13,000 per year, per child
III. Assets may only be used for education expenses
IV. Earnings reported under adult custodian’s tax identification


A. I and II
B. III and IV
C. II and III
D. None of the choices listed

Answer: D. 

Anyone may contribute to a Uniform Gifts to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA) account and there are no contribution limits. Assets in UGMA/UTMA accounts may be used for any purpose and earnings are reported on the minor’s social security account, not the custodian’s.

The Clock Is Ticking: Series 50 Deadline is September 12, 2017

If you are a municipal advisor representative and have not yet passed the Series 50 exam, time is running out. As of this writing, you have 78 days until the September 12 deadline. After that, you will not be able to engage in municipal advisory activities until you have a Series 50 license. Continue reading

If you are a municipal advisor representative and have not yet passed the Series 50 exam, time is running out. As of this writing, you have 78 days until the September 12 deadline. After that, you will not be able to engage in municipal advisory activities until you have a Series 50 license.

municipal advisor is any firm that provides advice to, or on behalf of, municipal entities or an obligated person, and a municipal advisor representative is an individual who works on the municipal advisor’s behalf.

According to Lynette Kelly, executive director of the MSRB, in The Bond Buyer, “after September 12, any firm that doesn’t have an individual qualified [as a municipal advisor representative] cannot represent that they can engage in municipal advisory activities.” In other words, you can’t do the work without the license.

The MSRB released the 110-question permanent Series 50 exam September 12, 2016, allowing municipal advisor representatives a one-year grace period to pass the test and get a Series 50 license.

If you fail the Series 50 exam, you must wait 30 days before taking it again. If you fail three times in a row, you must wait 180 days before retaking it.

Need help? The Solomon Exam Prep pass rate for the Series 50 exam is 94.29%. Click here for more information, or give us a call at 503-601-0212 for more information!