The MSRB Professional Qualification Program sets basic standards of competency for municipal securities professionals and municipal advisors, and fosters compliance with MSRB rules through required examinations and continuing education.
Established MSRB rules govern the qualification, classification, disqualification, disciplinary actions and related professional requirements for municipal securities brokers and dealers, which include securities firms and banks. Effective April 27, 2015, amended MSRB Rule G-3 creates professional qualification standards for municipal advisors. In order to engage in municipal securities activities or municipal advisory activities, firms must also be registered with the MSRB and the Securities and Exchange Commission.
Classifications of Municipal Securities Principals and Representatives
The MSRB classifies municipal securities professionals into five groups based on their function.
- Municipal securities representatives perform fundamental functions such as selling, trading and underwriting municipal securities.
- Municipal securities sales limited representatives perform activities limited exclusively to sales to and purchases from customers of municipal securities.
- Limited representative – investment company and variable contracts products performs activities with respect to municipal securities that are limited exclusively to sales to and purchases from customers of municipal fund securities.
- Municipal securities principals manage, direct or supervise the municipal securities activities of a securities firm or bank dealer.
- Municipal securities sales principals are associated with securities firms and perform supervisory activities with respect to municipal securities that are limited to sales to and purchases from customers of municipal securities.
Each class of associated persons has certain responsibilities and must satisfy qualification requirements as outlined in MSRB Rule G-3. Read more about the categories of registered persons and the supervisory obligations of registered principals in MSRB Notice 2011-62.
Classifications of Municipal Advisor Representatives and Principals
- Municipal advisor representatives are associated with a municipal advisor and engage in municipal advisory activities on the municipal advisor’s behalf.
- Municipal advisor principals are qualified as municipal advisor representatives and are directly engaged in the management, direction or supervision of the municipal advisory activities of the municipal advisor and its associated persons.
MSRB Study Outlines
The MSRB provides study outlines for its municipal securities qualification examinations.
FINRA administers qualification examinations for the other categories of municipal securities professionals.
- Series 6 – The Investment Company Products/Variable Contracts Limited Representative Examination
- Series 7 – The General Securities Representative Examination qualifies an individual as a municipal securities sales limited representative.
- Series 10 – The General Securities Sales Supervisor's Examination qualifies a municipal securities sales supervisor.
Study outlines for these examinations are available at www.finra.org.
The Securities Industry/Regulatory Council on Continuing Education website provides information about the continuing education program for municipal securities dealers.