The MSRB is in the process of establishing minimum professional qualification requirements, including testing, for municipal advisors as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. MSRB Rule G-3, effective April 27, 2015, creates two classifications of municipal advisor professionals, representative and principal, with firms required to designate at least one principal to oversee the municipal advisory activities of the firm. All municipal advisor representatives and principals are required to take and pass the forthcoming Municipal Advisor Representative Exam (Series 50) to demonstrate baseline competency.
Municipal Advisor Representative Exam
A volunteer committee of municipal advisor professionals developed the content outline for the exam, which was approved by the MSRB Board of Directors in January 2015. The MSRB conducted focus groups, an electronic survey and extensive outreach to gather input from municipal advisors and others about the content for the exam. The MSRB will file the content outline with the Securities and Exchange Commission for approval and make it publicly available as a study aid.
To facilitate the transition to the new exam requirement, the MSRB’s rule provides for a one-year grace period during which individuals will be able to take the municipal advisor representative exam while still engaging in municipal advisory activities.
Later this year, the MSRB plans to administer a pilot test to validate its bank of test questions and set the passing score for the permanent Series 50 exam. Municipal advisors are invited to participate in the pilot test. Sign up to receive more information about the pilot test process as details become available.