RULE G-40 ON E-MAIL CONTACTS
HELP FOR DEALERS
and
QUESTION & ANSWER GUIDANCE

Overview of Rule G-40

Rule G-40 requires the following:

•        Every dealer must maintain an Internet e-mail account to permit communication with the MSRB.

•        Every dealer shall use Form G-40 to appoint a Primary Contact for purposes of electronic communication between the dealer and the MSRB.  The Primary Contact must be either a Series 53-registered municipal securities principal or a Series 51-registered municipal fund securities limited principal.

•        All Form G-40 submissions (i.e., initial forms and subsequent updates and amendments) must be completed electronically using the appropriate user ID and password.  Paper submissions will NOT be accepted. 

•        The information on Form G-40 must include, among other things, the Primary Contact’s name, e-mail address and telephone number. 

•        Dealers may appoint an Optional Contact, if they wish.  The Optional Contact does not have to be a registered principal or hold any other particular position.

•        Within 17 business days after the end of each calendar year, every dealer with an existing G-40 Account must review and either electronically update information on their Primary Contact or affirmatively indicate that no changes are necessary. In addition to this Annual Requirement, Rule G-40 requires dealers to promptly update any change in the required information for their Primary Contact but not later than 30 days following such change.  Failure to take one or more of these actions may result in non-compliance with Rule G-40, which will be referred to FINRA (or other appropriate regulatory agency). 

A.   HELP FOR FIRMS THAT HAVE RECENTLY REGISTERED WITH MSRB

The MSRB recently mailed you a “Welcome Packet” that, among other things, included your firm’s MSRB Registration Number and a temporary password to be used to electronically create and submit your G-40 Account.  Instructions were included with the Welcome Packet and are reprinted below.  Please note that the temporary password will expire after its first use or after 45 days, whichever occurs first.  If you do not have your MSRB Registration Number and password, contact our G-40 personnel for help at (703) 797-6600.

Instructions for Creating a New G-40 Account

1.      Go to www.msrb.org.

2.      Select “Rules and Forms” from the main menu.

3.      Select “Index of Rules and Forms” from the pop-up menu.

4.      Select “Form G-40” from the Forms section.

5.      You are then presented with a sample Form G-40, click “Click here to electronically submit Form G-40”.

6.      Enter your firm’s MSRB Registration Number (also referred to as MSRB ID).

7.      Enter the eight-character Password provided in this letter.

8.      Click the “Continue” button.

9.      Enter the requested information for a Primary Contact.

10.  If you wish, you may enter information for an Optional Contact. This individual is not required to be a Series 53 or Series 51 registered principal.

11.  Click “Submit” to complete this process.

12.  We recommend that you print a copy of the form at the end of this process.  The MSRB cannot fax or mail copies of Form G-40.

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B.   HELP IN PERFORMING VARIOUS TASKS RELATING TO FORM G-40 

As noted above, dealers are required to perform an annual review and, if necessary, update their G-40 Account.  Listed below are instructions to help dealers perform various tasks related to this annual requirement.  Identify the scenario that applies to you and follow the instructions provided.

                                                            Scenario I

To change/update the Primary Contact’s information:

1.  Log on from the MSRB web site at www.msrb.org. Click “Log-in” on the left frame. 

2.  Use the Primary Contact’s user ID and password to access your G-40 account.

3.  Click on the “Affirm or Update Account” link and enter any new or amended information in the appropriate fields.

4.  Click the "Submit Changes" button.  Review the information displayed on the next page and click the "Confirm Changes" button to complete this process.

                                                            Scenario II

No changes to the Primary Contact’s information are necessary:

1.  Log on from the MSRB web site at www.msrb.org.  Click “Log-in” on the left frame.

2.  Use the Primary Contact’s user ID and password to access your G-40 account.

3.  Click on the “Affirm or Update Account” link.

4.  Scroll down to the bottom of the page and check the box for “No changes are necessary at this time.”

5.  Click on the "Submit Changes" button.  Review the information displayed on the next page and click the "Confirm Changes " button to complete this process.

                                                            Scenario III

To change the Primary Contact to a new individual (remember: the Primary Contact must be a Series 51 or Series 53 registered principal):

1.  Log on from the MSRB web site at www.msrb.org.  Click “Log-in” on the left frame.

2.  Use the Primary Contact’s user ID and password to access your G-40 account.

3.  Click on the “Change Primary Contact” link.

4.  You will then be given a list of all MSRB accounts associated with your firm. You may designate as your Primary Contact any person listed for such accounts, or you may designate someone else as the Primary Contact. 

To designate as your Primary Contact a person associated with an existing account, click on that person’s name, click “Confirm Changes,” enter the information requested, and then click “Continue.”

To designate as your Primary Contact a new person (i.e., someone not associated with an existing account), click "New Account," enter the information requested, click “Confirm Account,” and then click “Continue.” 

                                                            Scenario IV

To switch the current Optional and Primary Contacts for your firm (i.e., to make the current Optional Contact the new Primary Contact, and make the current Primary Contact the new Optional Contact):

1.  Log on from the MSRB web site at www.msrb.org.  Click “Log-in” on the left frame.

2.  Use the Primary Contact’s user ID and password to access your G-40 account.

3.  Click the “Switch Primary and Optional” link.

4.  Read the information on the next page.  To continue, click “Submit Changes.”

5.  Review your G-40 account information on the next page. Click “Return to G-40 Maintenance .”

                                                            Scenario V

To create an Optional Contact (this function is available only if your firm does not currently have an Optional Contact):

1.  Log on from the MSRB web site at www.msrb.org.  Click “Log-in” on the left frame.

2.  Use the Primary Contact’s user ID and password to access your G-40 account.

3.  Click on “Create Optional Contact.”

4.  You will then be given a list of all MSRB accounts associated with your firm. You may designate as your Optional Contact any person listed for such accounts, or you may designate someone else as the Optional Contact. 

To designate as your Optional Contact a person associated with an existing account, click on that person’s name, click “Confirm Changes,” enter the information requested, and then click “Confirm Account.”

To designate as your Optional Contact a new person (i.e., someone not associated with an existing account), click "New Account," enter the information requested, click “Confirm Account,” and then click “Continue.” 

                                                            Scenario VI

To change the current Optional Contact to a new individual:

1.  Log on from the MSRB web site at www.msrb.org. Click “Log-in” on the left frame.

2.  Use the Optional Contact’s user ID and password to access your G-40 account.

3.  Click “Change Optional Contact Link.”

4.  You will then be given a list of all MSRB accounts associated with your firm. You may designate as your Optional Contact any person listed for such accounts, or you may designate someone else as the Optional Contact. 

To designate as your Optional Contact a person associated with an existing account, click on that person’s name, click “Confirm Changes,” enter the information requested, and then click “Return to Login .”

To designate as your Optional Contact a new person (i.e., someone not associated with an existing account), click "New Account," enter the information requested, click “Confirm Account,” and then click “Continue.” 

                                                            Scenario VII

To remove yourself from the Optional Contact designation:

1.  Log on from the MSRB web site at www.msrb.org.  Click “Log-in” on the left menu.

2.  Use the Optional Contact’s user ID and password to access your G-40 account.

3.  Click on “Delete Optional Contact.”

4.  Read the information presented on the next page.  Click “Confirm Deletion.”

Scenario VIII

The Primary Contact may print a copy of the firm's Form G-40 which will show G-40 account information for that firm.

1.     Log on from the MSRB web site at www.msrb.org. Click “Log-in” on the left.
2.      Use the Primary Contact’s user ID and password to access your G-40 account.
3.      Click on the “Printable Copy of Form G-40 Link ”.
4.      When the Form G-40 appears on the page, click on the “Print this Page Button”.
5.      Click “Print” on the pop-up window.

Scenario IX

To Delete the Optional Contact (from the Primary Contact's menu options)

1.     Log on from the MSRB web site at www.msrb.org. Click “Log-in” on the left.
2.     Use the Primary Contact’s user ID and password to access your G-40 account.
3.     Click on the "Delete Optional Contact Link"
4.     Click on the "Confirm Deletion Button".
5.     Click on the "Return to G-40 Maintenance Button" to return to your G-40 account page.

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C.   QUESTIONS & ANSWERS

1.Q:  What is the purpose of Rule G-40?

A:  The events of September 11, 2001, as well as the weeks that followed, emphasized the importance of, and need for, a formalized business continuity plan that included an efficient and reliable means of official communication between regulators and the municipal securities industry.  Rule G-40 establishes such a means of communication and allows the MSRB to efficiently alert dealers to official communications, including time-sensitive developments, rule changes, notices, etc.  In addition, at about the time Rule G-40 was adopted in 2002, the MSRB discontinued publication of MSRB Reports; all MSRB notices are now available exclusively on the MSRB web site.  Rule G-40 ensures that such notices and other important communications continue to reach each dealer.

2.Q:  What items of information are required on Form G-40?

A: The following information is required on Form G-40:

•        The name of the dealer.

•        The date the form is prepared.

•        The dealer’s MSRB Registration Number.

•        The name of the Primary Contact and his/her e-mail addressand telephone number.

•        The name of the Optional Contact, if any, and his/her e-mail address and telephone number.

•        The name, title and telephone number of the person who prepared the form.

3.Q:  What happens if we inadvertently omit an item of information from our Form G-40?

A:  The system will not accept a form that is incomplete; you will receive a “prompt” regarding what information is required to complete the form.

4.Q:  What happens if we inadvertently provide a bad e-mail address for the Primary Contact?

A:  Dealers are responsible for ensuring that e-mail failures do not occur, and that MSRB e-mails are not recognized as “spam” by the dealer’s system.  Such occurrences may result in non-compliance with Rule G-40, and any such dealer will be referred to FINRA (or the appropriate bank regulator).

5.Q:  How often does a dealer need to review information on its Primary Contact?

A:  Rule G-40 requires that every dealer review and, if necessary, update information on its Primary E-mail Contact and submit such information electronically to the MSRB within 17 business days after the end of each calendar year.  However, dealers are required to update their Form G-40 whenever changes occur to the information previously submitted for their Primary Contact but not later than 30 days following such change.

6.Q:  What steps do I actually follow to perform the annual review?

A:  If changes to the Primary Contact’s information are necessary, follow these steps:

1.  Log on from the MSRB web site at www.msrb.org.  Click “Log-in” on the left frame.

2.  Use the Primary Contact’s user ID and password to access your G-40 account.

3.  Click on the “Affirm or Update Account” Link and enter any new or amended information in the appropriate fields.

4.  Click on the “Submit Changes” button.  Review the information displayed on the next page and click the “Confirm Changes” button to complete this process.

      If no changes to the Primary Contact’s information are necessary, follow these steps:

1.  Log on from the MSRB web site at www.msrb.org.  Click “Log-in” on the left frame.

2.  Use the Primary Contact’s user ID and password to access your G-40 account.

3.  Click on the “Affirm or Update Account” link.

4.  Confirm your email address by entering it into the box labeled "Email Confirmation"

5.  Scroll down to the bottom of the page and check the box for “No changes are necessary at this time.”

6.  Click on the “Submit Changes” button.  Review the information displayed on the next page and click the “Affirm Information” button to complete this process.

7.Q:  Can a dealer update its Form G-40 information in writing or by phone instead of online?

A:  No.  All Form G-40 submissions (i.e., initial forms and subsequent updates and amendments) must be submitted electronically using the appropriate user ID and password.

8.Q:  If my firm is about to register with the MSRB, how do I obtain a user ID and password for purposes of Rule G-40?

A:  A dealer that is newly registering with the MSRB will receive the firm’s MSRB Registration Number and a temporary password with its “Welcome Packet.”  The dealer will use that Registration Number and password to log-on to the G-40 site and electronically complete its initial Form G-40 registration.  Upon such completion, the Primary Contact listed will be assigned a permanent user ID and password to access the firm’s online G-40 account.  The temporary password will become inactive after its first use or after 45 days, whichever occurs first.

9.Q:  If a dealer creates its initial G-40 account within the 17-day annual update period, is the dealer still required to perform the update requirement for that year?

A:  Any dealer that, during the 17 business-day update period, submits its initial Form G-40 or modifies or affirms information previously submitted shall be deemed to be in compliance with the annual update requirement applicable to the year immediately preceding that 17 business-day update period.

10.Q:  My firm has been registered with the MSRB for some time.  What should I do if I forget my user ID or password?

A:   If you have forgotten your password but know your user ID, go to the G-40 log-in page and click “Forgot Your Password.”  If you have forgotten both your password and user ID, contact the MSRB’s offices and the appropriate personnel will assist you.

11.Q:  Does the Primary Contact have to be a registered principal?

A:  Yes.  Rule G-40 requires that the Primary Contact be a Series 53-registered municipal securities principal or a Series 51-registered municipal fund securities limited principal with the firm.  If a dealer has newly registered with the MSRB and does not yet have a registered principal, the dealer may designate a temporary Primary Contact but must designate a registered principal (either Series 51 or Series 53) as the Primary Contact within 90 days of registering with the MSRB.  Failure to do so will result in that dealer being referred to FINRA (or the appropriate bank regulator) for appropriate enforcement action.

12.Q:  What should a dealer do if its Primary Contact’s e-mail address changes?

A:  The Primary Contact should promptly amend its firm’s Form G-40 by submitting such changes electronically.  It is vital that this information remain current so that the dealer continues to receive important information from the MSRB. 

13.Q:  What should a dealer do if the Primary Contact is no longer employed by the firm and the firm wants to designate a new Primary Contact?

A:  If you do not have the Primary Contact’s user ID and password, contact the MSRB’s offices and the appropriate G-40 personnel will help you.  However, if you know the Primary Contact’s user ID and password, then follow these steps:

•        Log on from the MSRB web site at www.msrb.org.

•        Use the Primary Contact’s user ID and password to access your firm’s G-40 account.

•        Click on the “Change Primary Contact” link.

•        You may either (i) create a new Primary Contact, or (ii) transfer G-40 access rights to an existing account within your firm (i.e., to someone who is responsible for your firm’s G-37 or RTRS submissions) by following the steps on the screen.  

•        To complete this process, be sure to click the “Submit Form” button.

14.Q:  The person currently listed as our Primary Contact has left the firm and we do not have another Series 51 or Series 53 principal to replace him. Who should be designated as our new Primary Contact?

A:  Rule G-40 requires that the Primary Contact be a Series 53 or Series 51 registered principal with the firm.  However, if the firm currently does not have such a principal, you may appoint someone to temporarily serve in that position but that person must take and pass either the Series 51 or Series 53 exam within 90 days of such designation.

15.Q:  I am the Primary Contact for my firm and do not want to receive MSRB e-mails.  How do I unsubscribe from the MSRB e-mail notification system?

A:  A Primary Contact may not “unsubscribe” from the MSRB e-mail notification system.  However, as the Primary Contact, you may designate another principal (either Series 51 or Series 53) to fill that role by logging in to the firm’s G-40 Account (using your user ID and password) and following the relevant instructions. 

16.Q:   I am the Optional Contact for my firm and no longer wish to serve in that role.  How do I remove myself from this designation?

A:   An Optional Contact may remove himself or herself from this role by logging in to the firm’s G-40 Account (using your user ID and password) and following the relevant instructions.

17.Q:  How can other employees of a dealer receive MSRB notices?

A:  A dealer’s Primary Contact must be either a Series 51 or Series 53 registered principal with the firm.  The same dealer may also appoint an Optional Contact who does not have to be a registered principal or occupy any particular position within the firm.  In addition, anyone may subscribe to the MSRB’s e-mail notification system by simply browsing to the MSRB’s web site at www.msrb.org, clicking on “Email Subscriptions” at the top of the page, and submitting this electronic form.  This service is provided free of charge. 

18.Q:  We are no longer operating as a broker-dealer.  Since I sent our Form BDW to FINRA to withdraw from its membership, will that automatically withdraw our membership from the MSRB, too? 

A:  No.  Membership with the MSRB is separate from FINRA membership.  In order to withdraw from the MSRB you must submit a written statement directly to the MSRB and include the firm’s name, address and SEC registration number, along with a statement that your firm is no longer engaging in municipal securities activities.

19.Q:  Who can I call if I need help with Rule G-40 or Form G-40?

A:  Contact the MSRB’s offices at (703) 797-6600 and the appropriate personnel will assist you.