MSRB NOTICE 2003-26 (JULY 1, 2003)

NOTICE OF TECHNICAL AMENDMENTS TO FORM G-40, ON E-MAIL CONTACTS

On July 1, 2003, the Municipal Securities Rulemaking Board (“MSRB”) filed with the Securities and Exchange Commission (“SEC”) a proposed rule change consisting of technical amendments to Form G-40, on e-mail contacts.[1]  The amendments clarify that, for purposes of Rule G-40, the Primary Contact may be either a Series 53-registered municipal securities principal or a Series 51-registered municipal fund securities limited principal; that a dealer may amend its Form G-40 electronically by logging on to the MSRB’s website; and that dealers must indicate whether the form they are submitting is an original or amended Form G-40. The amendments will become operative on August 4, 2003.

SUMMARY OF AMENDMENT 

Rule G-40 requires that dealers use Form G-40 to appoint an E-mail contact to serve as the official contact person for purposes of electronic communication between the dealer and the MSRB (the “Primary Contact”).  This E-mail contact must be a registered municipal securities principal with the dealer.

During a transition period that ended March 31, 2003, the MSRB permitted dealers whose only municipal securities activities consisted of transactions in municipal fund securities (Section 529 college savings plans and local government investment pools) to appoint either a general securities principal (Series 24) or an investment company/variable contracts limited principal (Series 26) as their Primary Contact.  In addition to serving as a Primary Contact pursuant to Rule G-40, a Series 24 or 26 principal was permitted, pursuant to Rule G-3, to supervise the dealer’s activities with respect to municipal fund securities until March 31, 2003.  This transition period was meant to accommodate such dealers until the new Series 51 examination for municipal fund securities limited principals became available.[2]  As of April 1, 2003, every dealer is required, pursuant to Rule G-3 on professional qualifications, to have either a municipal fund securities limited principal (Series 51) or a municipal securities principal (Series 53), as appropriate, even if the dealer’s only municipal securities activities consist of transactions in municipal fund securities.  In addition, every dealer is required to have either a Series 51 or Series 53 principal as their Primary Contact. 

The proposed rule change clarifies that, for purposes of Rule G-40, the dealer’s Primary Contact may be either a Series 53-registered municipal securities principal or a Series 51-registered municipal fund securities limited principal.  Thus, dealers who previously listed a Series 24 or 26 principal as their Primary Contact on Form G-40 should amend their form electronically by visiting the MSRB’s web site (www.msrb.org) and listing either a Series 53 or 51 principal as their new Primary Contact.  Of course, no amendment is necessary if this is the same person, i.e., the Series 24 or 26 previously listed has taken and passed the Series 53 or 51 examination.

The proposed rule change also clarifies that a dealer may amend its Form G-40 electronically by logging on to the MSRB’s web site, and that dealers are required to indicate whether the form they are submitting is an original or amended Form G-40.

July 1, 2003

TEXT OF AMENDMENT[3]

Form G-40

                                             ELECTRONIC MAIL CONTACTS

 

                                                                                    MSRB Registration Number

                                                                                    _____________________________

Check one:

                        ___  Original Form

 

                        ___  Amended Form

                                                                                               

Name of Dealer: _________________________________________________________

 

Date: __________________________________________________________________

 

The dealer named above designates (name) ____________________________________ as its Primary Electronic Mail Contact for purposes of electronic communications with the MSRB.  This Primary Contact person is either a Series 53-registered municipal securities principal or a Series 51-registered municipal fund securities limited principal with the dealer.

 

E-Mail Address of Primary Contact: __________________________________________

Phone Number of Primary Contact: ___________________________________________

Individual CRD Number of Primary Contact (NASD member firms only): ____________

 

(Optional):  The dealer named above designates (name) ___________________________

as its Optional Electronic Mail Contact.

E-mail Address of Optional Contact:__________________________________________

Phone Number of Optional Contact: __________________________________________

 

Name and title of person preparing this Form:___________________________________

Signature: _______________________________________________________________

Telephone number: _______________________________________________________

 

NEW FORMS MUST BE MAILED TO:

MSRB

1900 Duke Street, Suite 600

Alexandria, VA  22314

[UPDATES TO THE FORM SHALL BE SUBMITTED] FORMS MAY BE AMENDED ELECTRONICALLY [VIA THE G-40 LOG-IN ON] BY LOGGING ON TO THE MSRB’S WEB SITE (www.msrb.org) AND USING THE PRIMARY CONTACT’S USER ID AND PASSWORD TO CHANGE INFORMATION RELATING TO THAT PERSON, OR USING THE OPTIONAL CONTACT’S USER ID AND PASSWORD TO CHANGE INFORMATION RELATING TO THAT PERSON.



[1]           SR-MSRB-2003-05.  Comments on the proposed rule change should be submitted to the SEC and should reference this file number.

[2]           The Series 51 examination has been available since January 2, 2003, and is administered through NASD’s PROCTOR system.

[3]            Underlining indicates new language; brackets indicate deletions.