Municipal Securities Principal Actions
Question
Which of the following actions is NOT required of a municipal securities principal?
Answers
Explanations
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A. B. C. D.C
The Municipal Securities Rulemaking Board (MSRB) regulates the municipal securities market, which includes securities issued by states, cities, and other political subdivisions. Municipal securities professionals, including municipal securities principals, are required to comply with MSRB rules and regulations.
A municipal securities principal is a person who has supervisory responsibility over a municipal securities business, including the activities of associated persons. A municipal securities principal is required to pass the Municipal Securities Principal Qualification Examination, also known as the Series 53 exam, in order to register as a principal with a broker-dealer or bank.
Answer A, "Pass the Municipal Securities Principal Qualification Examination," is a required action of a municipal securities principal. Passing the Series 53 exam demonstrates that the individual has the knowledge and skills necessary to supervise municipal securities activities and comply with MSRB rules and regulations.
Answer B, "Complete Form MSD-4 and submit it to the bank," is not a required action of a municipal securities principal. Form MSD-4 is used to register with the MSRB as a municipal securities dealer, but it is not necessary for a municipal securities principal to complete this form.
Answer C, "Work as an apprentice for one year in a municipal securities operation," is not a required action of a municipal securities principal. However, it may be a beneficial step in gaining experience and knowledge of the municipal securities market.
Answer D, "Work in a supervisory role in a municipal securities operation," is a required action of a municipal securities principal. A municipal securities principal must have experience working in a supervisory role in a municipal securities operation in order to effectively supervise the activities of associated persons and ensure compliance with MSRB rules and regulations.
In summary, the correct answer is B, "Complete Form MSD-4 and submit it to the bank," as it is not a required action of a municipal securities principal.
