Regulations - MSRB Rules Flashcards
The MSRB board is composed of _______ and createds regulations applicable to banks, brokers, and dealers who engage in municipal activities
15 members
The MSRB has no regulatory authority over ______, just market participants
issuers
The MSRB cannot enforce its regulations, so it relies on the ______, ______, and ______ to enforce its rules over banks
Fed reserve board, fed deposit insurance corp, and office of the comptroller of currency
The MSRB cannot enforce its regulations, so it relies on the _____ and _____ for broker dealers
SEC and FINRA
Muni RR Principals must pass the _____, the prerequisite is the _____
Series 53, rereq is the Series 52
For unregistered muni people, you are specifically NOT allowed to _____ orders, ______ new accounts, or ____ from prepared scrips to introduce the services of muni dealers or prequalify customers
solicit orders, solicit new accounts, or read from prepared scripts
If a person who is a partner or employee of another muni BD wants to open an account at your firm, the employer must be given _____
written notice
When opening accounts for other muni employees, _____ confirmations must be sent to that employer and any written instructions from that employer must be _____
duplicate confirmations sent; written instructions must be followed
Muni firms are allowed to enter into ______ agreements for _____ securities
repurchase agreements for exempt securities
A BD that acts as the investment adviser to a municipality on their new offer cannot also be an _____-
underwriter
For new issues of munis, the BD must send the final official statement (disclosure doc, if prepared), no later than _____ of the transaction
settlement
For negotiated offerings, the BD must disclose the _____ to the customer
spread
Records of any customer complaints, according to the MSRB, must be kept for ______
6 years
A “subject” quote is one that is subject to some _____
condition (usually that the quote has to be re-verified)
From a joint account, only one _____ may be published
one quote
Factors to consider for both agency AND principal muni transactions:
- best judgement of fair market value
- expense of filling an order
- firm is entitled to a profit
- availability of the security
- total dollar amount of the transaction
- value of services rendered
Factors to consider ONLY for principal transactions:
- yield should be comparable to other securities of similar characteristics
- maturity, rating, and call features
- nature of the dealer’s business
- existence of material information through EMMA or other industry sources
Factors to consider ONLY for agency trades:
- price of the transaction
- amount of any other comp received in connection with the transaction
No later than ___ after the date of sale, the manager of the muni syndicate must disclose in writing to all syndicate members all allocations of securities which were given priority over ______ orders
2 days; priority over member takedown orders
Official statements/offering circulars are _____ considered advertising under MSRB, but ______ of those documents are
NOT, but summaries are
Each muni advertisement must be approved in advance by a ______ and must be retained for records for _____
by a principal, must be retained for 4 years
Muni BDs can contribute no more than _____ per election
$250
On a trade confirmation, there is no requirement to disclose the ______ from a national ratings agency
rating of the bonds
Does it matter for control disclosures if you are acting as a principal or agent?
NO - does not matter
