Testimonial Tuesday: March 25, 2014 Edition

It appears you hit the nail on the head with the new exam prep for the Series 52. I passed on the first attempt. Continue reading


“It appears you hit the nail on the head with the new exam prep for the Series 52. I passed on the first attempt.”
-Michael Earl, Vienna, WV

Read more reviews here: Solomon Exam Prep Reviews

Study Question of the Week: February 5, 2014 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 24, Series 26, Series 52, Series 62, Series 79, and Series 82. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 6Series 24, Series 26, Series 52Series 62, Series 79, and Series 82): 

When must a Suspicious Activity Report be filed under the Bank Secrecy Act?

Answers:

A. Within 15 days of the transaction

B. Within 15 days of discovery

C. Within 30 days of the transaction

D. Within 30 days of discovery

Correct Answer: D. Within 30 days of discovery

Rationale: The Bank Secrecy Act requires that money service businesses file Suspicious Activity Reports (SARs) within 30 days of becoming aware of any suspicious transaction that is required to be reported. In the securities business, suspicious transactions are required to be reported if they involve $5,000 or more. A copy of the report must be kept for five years.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Solomon Exam Prep Launches “Series 52 MSRB Municipal Securities Representative Qualification Exam” Study Program

Solomon Exam Prep is excited to announce the launch of the Solomon Exam Prep study program for the Municipal Securities Rulemaking Board’s Series 52 Municipal Securities Representative Qualification Exam. Continue reading

Solomon Exam Prep is excited to announce the launch of the Solomon Exam Prep study program for the Municipal Securities Rulemaking Board’s Series 52 Municipal Securities Representative Qualification Exam (https://solomonexamprep.com/series52/). Series 52 Exam Study Guide

Individuals who pass the Series 52 exam qualify to be a Municipal Securities Representative and may work in multiple capacities relating to municipal securities, including underwriting, sales, trading, advising, and consulting with issuers, research, investment advising, and communicating with public investors about municipal securities, including US government and agency securities.

Since November 7, 2011 when FINRA revamped the Series 7 General Securities Representative Examination by de-emphasizing non-sales activities and by reducing the number of municipal securities questions, in the context of municipal securities passing the Series 7 only qualifies a registered person to be involved in the purchase and sale of municipal securities to customers, a qualification called the Municipal Securities Sales Limited Representative. However, anyone who passed the Series 7 before November 7, 2011 is grandfathered into the Municipal Securities Representative category provided the individual has kept their Series 7 license current.

For representatives whose activities are limited solely to municipal fund securities (i.e. 529 College Savings Plans and Local Government Investment Pools), the MSRB says those who pass the Series 6 exam are a “Municipal Securities Representative qualified by virtue of being a Limited Representative – Investment Company and Variable Contracts Products.”

The Series 52 is a pre-requisite exam for the Series 53 Municipal Securities Principal Exam.

The Municipal Securities Representative Qualification Exam is written by the MSRB but it is administered by FINRA who charges $180 for the pleasure of taking the Series 52. The exam contains 115 questions, each worth 1 point. The individual is given 3 and one-half hours to complete the exam, and a minimum score of 70% is needed to pass.

The exam is broken down in to 4 distinct topic areas which are weighted differently:

Municipal Securities – 57%

U.S. Government, Federal Agency and Other Financial Instruments – 4%

Economic Activity, Government Policy and the Behavior of Interest Rates – 13%

Federal Legal Considerations – 26%

For more information and a complete break-down of the topics in the exam, visit http://www.msrb.org/Rules-and-Interpretations/Professional-Qualification.aspx

Study Question of the Week: January 29, 2014 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 7, Series 24, Series 52, Series 62, Series 65, and Series 82. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 7, Series 24, Series 52, Series 62, Series 65, and Series 82): 

How much would you pay for a $1,000 10-year Treasury bond priced at 101.08 (excluding accrued interest)?

Answers:

A. $1,010.80

B. $10,108.00

C. $1,012.50

D. $1,010.25

Correct Answer: C. $1,012.50

Rationale: Treasury bonds are typically priced in percentage points of par and in fractions of 32nds of percentage points. For example the .08 of the quote should be understood as 8/32nds of a percentage point or .25%. Thus, 101.08 is equivalent to 101.25% of par which is $1,000 x 101.25 which is $1,012.50.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Study Question of the Week: January 22, 2014 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 7, Series 52, and Series 65. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 6, Series 7, Series 52, and Series 65): 

The Fed (Federal) Funds rate refers to:

Answers:

A. The rate banks have to pay when borrowing from the Federal Reserve

B. The rate broker-dealers pay when borrowing on behalf of customers

C. The rate that the most credit worthy customers pay when borrowing

D. The rate banks charge each other for overnight loans over $1,000,000

Correct Answer: D. The rate banks charge each other for overnight loans over $1,000,000

Rationale: The Federal Funds Rate refers to the rate that banks charge each other for short-term loans.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Exam Alert: MSRB Prohibits Municipal Dealers from Consenting to Changes to Authorizing Documents

Effective February 3, 2014, the Municipal Securities Rulemaking Board (MSRB) will amend one of its rules to help protect municipal bond investors from unexpected changes in bond authorizing documents. The amendments prohibit broker-dealers from agreeing to changes to authorizing documents when acting as an underwriter or remarketing agent, or acting as an agent for bondholders. Continue reading

Effective February 3, 2014, the Municipal Securities Rulemaking Board (MSRB) will amend one of its rules to help protect municipal bond investors from unexpected changes in bond authorizing documents. The amendments prohibit broker-dealers from agreeing to changes to authorizing documents when acting as an underwriter or remarketing agent, or acting as an agent for bondholders.

The rule allows for exceptions in certain situations. These situations include:

    • the authorizing document explicitly permits an underwriter to provide bond owner consent, and this was disclosed in the offering documents;
    • the broker-dealer owns the securities outside of its capacity as an underwriter or remarketing agent;
    • the securities are held by the remarketing agent due to a mandatory tender of the securities;
    • the bond owners have provided written consent; or
    • the underwriter provides consent on behalf of prospective purchasers, if the changes will not become effective until all current bondholders have provided consent.

The “authorizing document” refers to the trust indenture, resolution, ordinance, or other document under which the securities are issued.

Source: MSRB Enhances Protections for Investors Against Unexpected Changes to Bond Authorizing Documents

This alert applies to the Series 7, Series 52, and Series 53.