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Contact: Jennifer A. Galloway, Chief Communications Officer
                (703) 797-6600
                jgalloway@msrb.org  

MSRB SEEKS CHANGE TO DEALER PROFESSIONAL QUALIFICATION REQUIREMENTS

Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) today filed a proposed rule change with the Securities and Exchange Commission that would restrict the municipal securities activities that an individual who has passed the General Securities Registered Representative Examination (Series 7) to sales to, and purchases from, customers.

In order to perform any other types of municipal securities activities, individuals would be required to qualify as a municipal securities representative by taking and passing the Municipal Securities Representative Examination (Series 52). Those activities include underwriting and trading; financial advisory or consultant services for issuers in connection with the issuance of municipal securities; research or investment advice with respect to municipal securities; or any other activities that involve communications, directly or indirectly, with public investors in municipal securities.

The proposed change to MSRB Rule G-3 is a result of changes being made by the Financial Industry Regulatory Authority to the Series 7 that will limit the test’s focus to sales activities.  

The changes to the MSRB’s professional qualifications Rule G-3 are proposed to take effect on November 7, 2011. Individuals who passed the Series 7 examination prior to the effective date of the proposed rule change and are not subsequently disqualified will continue to qualify to engage in all municipal securities activities.

The Municipal Securities Rulemaking Board (MSRB) was established by Congress in 1975 with the mission to protect investors, issuers and the public interest and to promote efficiency, competition and capital formation. MSRB is a private, self-regulatory organization governed by an independent board of directors with market knowledge and expertise. MSRB does not receive federal appropriations and is funded primarily through fees paid by regulated entities. MSRB is overseen by Congress and the Securities and Exchange Commission.

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