The MSRB Professional Qualification Program fosters competency of municipal professionals and compliance with MSRB rules through required examinations and continuing education. MSRB rules also govern the qualification, classification, disqualification, disciplinary actions and related professional requirements for municipal securities brokers and dealers, which include securities firms and banks.
The Dodd-Frank Wall Street Reform and Consumer Protection Act expanded the MSRB’s jurisdiction to include municipal advisor regulation and requires the MSRB to set standards of professional qualification for municipal advisors. Currently, there are no professional qualification requirements that apply to municipal advisors. However, to engage in municipal advisory activities, municipal advisors must be registered with the MSRB and the Securities and Exchange Commission.
To engage in municipal securities activities, dealers must also be registered with the MSRB and the Securities and Exchange Commission. Dealers that are municipal advisors must indicate this during the registration process. The associated persons of a dealer are classified by their activities. Each class of associated persons has certain responsibilities and must satisfy qualification requirements as outlined in MSRB Rule G-3.
Classifications of Principals and Representatives
The MSRB classifies municipal securities professionals into three groups based on their function.
- Municipal fund securities limited principals manage, direct or supervise the municipal securities activities of a securities firm or bank dealer only as these activities relate to transactions in municipal fund securities (including 529 college savings plans).
- Municipal securities representatives perform fundamental functions such as selling, trading, and underwriting municipal securities.
- Municipal securities principals manage, direct or supervise the municipal securities activities of a securities firm or bank dealer.
Details about these classifications, professional qualification exams, continuing education and other requirements are found in the MSRB Professional Qualifications Handbook.
MSRB Study Outlines and Guides
The MSRB provides study outlines and a guide for its municipal securities qualification examinations.
Other Information
The Securities Industry/Regulatory Council on Continuing Education website provides information about the continuing education program for municipal securities dealers.