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This question is relevant to the SIE and the Series 7, 14, 50, 52, and 54.
Question: A Municipal Finance Professional (MFP) hosted a $500 plate fundraiser for a governmental issuer. Does this event trigger a ban on business for two years?
A. Yes, it will trigger a ban because an MFP may not host a fundraiser.
B. Yes, it will trigger a ban because the cost per plate is above the de minimis amount.
C. No, it will not trigger a ban because the MFP did not contribute money, only time and space.
D. No, it will not trigger a ban because the MFP was holding the fundraiser, not the municipal dealer.
Correct Answer: A
Explanation: MFPs are not permitted to solicit funds for municipal issuers or their officials without triggering a two-year ban on business for their firm. Thus, holding fundraisers is not allowed. Municipal dealers are also forbidden from holding fundraisers.
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Yes, it will trigger a ban because the cost per plate is above the de minimis amount
No it will not trigger because the MFP did not give any money to the candidate, only hosted the event, time and space.
The answer is C.
No, it will not trigger a ban because the MFP did not contribute money, only time and space.
The MFP only hosted the event. The rule pertains to financial contributions. Also consumption is not subject to the $100 limit.
Answer is A: Yes, it will trigger a ban because an MFP may not host a fundraiser.
An MFP cannot solicit contributions on behalf of officials of issuers with which the broker-dealer is engaging or seeking to engage in municipal securities business.