MSRB NOTICE 2011-31 (JUNE 21, 2011)

MSRB FILES REVISED SERIES 51 STUDY OUTLINE

Today the Municipal Securities Rulemaking Board (MSRB) filed with the Securities and Exchange Commission (SEC) revisions to the study outline for the Municipal Fund Securities Limited Principal Qualification Examination (Series 51).[1]  The revised study outline will become effective on August 1, 2011.  MSRB Rule G-3(b)(iv) states that the municipal fund securities limited principal has responsibility to oversee the municipal securities activities of a securities firm or bank dealer solely as such activities relate to transactions in municipal fund securities.  In this capacity, the municipal fund securities limited principal manages, directs or supervises one or more of the following activities relating to municipal fund securities: underwriting, trading or selling municipal fund securities; rendering financial advisory or consultant services to issuers of municipal fund securities; research or investment advice, or communications with customers, about any of the activities named heretofore; maintaining records on activities in municipal fund securities; processing, clearing, and (in the case of securities firms) safekeeping of municipal fund securities; and training of principals and representatives.[2]  The only examination that qualifies a municipal fund securities limited principal is the Municipal Fund Securities Limited Principal Qualification Examination.

The Municipal Fund Securities Limited Principal Qualification Examination is designed to determine whether an individual meets the MSRB’s qualification standards for municipal fund securities limited principals.  To do this, the examination measures a candidate’s knowledge of MSRB rules, rule interpretations and federal statutory provisions applicable to the activities listed above.  It also measures the candidate’s ability to apply these rules and interpretations to given fact situations in the context of municipal fund securities activities.  In addition to passing this examination, a candidate must also have previously or concurrently qualified as a general securities principal or investment company/variable contracts limited principal.  The examination consists of 60 multiple-choice questions and each question is worth one point.  The passing grade is 70%.  Candidates are allowed one and one-half hours to complete the examination.

Recent changes to MSRB rules have necessitated revisions to the Series 51 study outline to indicate the current rule requirements and rule citations.  A summary of the changes to the study outline for the Series 51 examination, detailed by major topic headings, is provided below.  Changes are stated as revisions to the current outline. 

Part Three: General Supervision

Qualification and Registration

  • The topic for Rule A-15 has been revised to indicate the current rule requirements for notification to the MSRB of change in status, name or address

Part Six: Underwriting and Disclosure Obligations

Obligations of Municipal Underwriters

  • The topic “Delivery of official statement and Form G-36(OS) to the MSRB” has been replaced with “Submission of official statements, advance refunding documents and other required information to EMMA” to reflect the current requirements pursuant to Rule G-32(b)
  • The topic “Responsibility of primary distributors” has been deleted because the current requirements for primary distributors are included under the topic “Submission of official statements, advance refunding documents and other required information to EMMA” pursuant to Rule G-32(b)

Disclosures to Customers

  • The rule citation for the topic “Delivery of official statement to customer and other disclosure requirements” has been revised to reflect current Rule G-32

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Questions about the Series 51 examination program may be directed to Loretta Jones, Director, Professional Qualifications, or Maureen Hawkins, Professional Qualifications Analyst, at 703-797-6600. 

June 21, 2011

CLICK HERE TO VIEW THE REVISED SERIES 51 STUDY OUTLINE  


[1] File No. SR-MSRB-2011-07.  Comments on the filing should be submitted to the SEC and should reference this file number.  

[2] A municipal securities principal (Series 53) is also qualified to supervise these responsibilities.