MSRB NOTICE 2003-01 (JANUARY 9, 2003)

MUNICIPAL FUND SECURITIES LIMITED PRINCIPALS (SERIES 51) AND E-MAIL CONTACTS UNDER RULE G-40

This notice is a reminder for those dealers whose municipal securities activities are limited solely to municipal fund securities.

Rule G-40 requires each dealer to use Form G-40 to appoint a registered municipal securities principal as its primary e-mail contact with the MSRB.  Dealers may appoint an optional e-mail contact, and such contact does not have to be a registered principal.[1]    In August 2002, the MSRB provided clarification that dealers whose only municipal securities activities consist of transactions in municipal fund securities (Section 529 college savings plans and local government investment pools) may appoint either a general securities principal (Series 24) or an investment company/variable contracts limited principal (Series 26) as their primary e-mail contact pursuant to Rule G-40 until early 2003.[2] Rule G-40 became effective on September 4, 2002.

Rule G-3, on professional qualifications, currently allows a Series 24 or 26 principal to supervise municipal fund securities activities during a transition period that ends March 31, 2003.  The MSRB is reminding dealers that by April 1, 2003:

  • every dealer must have either a municipal fund securities limited principal (Series 51) or municipal securities principal (Series 53), as appropriate, even if a dealer’s only municipal securities activity consists of transactions in municipal fund securities;[3] and

  • those dealers who previously listed a Series 24 or 26 principal as their primary e-mail contact on Form G-40 may need to amend that form to list their Series 51 or 53 principal as their primary e-mail contact, if this is a different individual than the Series 24 or 26 principal previously listed.  Form G-40 can be amended via the MSRB’s web site (www.msrb.org) by logging in and using the user ID and password previously provided to each e-mail contact.

January 9, 2003



[1]           On August 7, 2002, the MSRB published notice of a technical amendment to Rule G-40, which provided that the optional e-mail contact does not have to be a registered municipal securities principal.  See “Notice of Amendment to Rule G-40 and Form G-40, on E-Mail Contacts,” dated August 7, 2002, at www.msrb.org.

[2]           Id.

[3]           The new Series 51 examination has been available since January 2, 2003, and is administered through NASD’s PROCTOR system.  Information regarding the administration of this examination may be obtained from NASD’s web site at http://www.nasdr.com/2630.asp.  In addition, appointments to take the examination may be made by contacting Prometric at (800) 578-6273 or by visiting Prometric’s registration web site at www.2test.com/ptc/PTCHome.jsp.