MSRB Seeks to Change Dealer Professional Qualification Requirements

Date: September 13, 2011

Contact: Jennifer A. Galloway, Chief Communications Officer
                (703) 797-6600


Alexandria, VA The Municipal Securities Rulemaking Board (MSRB) today filed a proposed rule change with the Securities and Exchange Commission that would restrict the municipal securities activities that an individual who has passed the General Securities Registered Representative Examination (Series 7) to sales to, and purchases from, customers.

In order to perform any other types of municipal securities activities, individuals would be required to qualify as a municipal securities representative by taking and passing the Municipal Securities Representative Examination (Series 52). Those activities include underwriting and trading; financial advisory or consultant services for issuers in connection with the issuance of municipal securities; research or investment advice with respect to municipal securities; or any other activities that involve communications, directly or indirectly, with public investors in municipal securities.

The proposed change to MSRB Rule G-3 is a result of changes being made by the Financial Industry Regulatory Authority to the Series 7 that will limit the test’s focus to sales activities.  

The changes to the MSRB’s professional qualifications Rule G-3 are proposed to take effect on November 7, 2011. Individuals who passed the Series 7 examination prior to the effective date of the proposed rule change and are not subsequently disqualified will continue to qualify to engage in all municipal securities activities.

The MSRB protects investors, state and local governments and other municipal entities, and the public interest by promoting a fair and efficient municipal securities market. The MSRB fulfills this mission by regulating the municipal securities firms, banks and municipal advisors that engage in municipal securities and advisory activities. To further protect market participants, the MSRB provides market transparency through its Electronic Municipal Market Access (EMMA®) website, the official repository for information on all municipal bonds. The MSRB also serves as an objective resource on the municipal market, conducts extensive education and outreach to market stakeholders, and provides market leadership on key issues. The MSRB is a self-regulatory organization governed by a 21-member board of directors that has a majority of public members, in addition to representatives of regulated entities. The MSRB is overseen by the Securities and Exchange Commission and Congress.