As summarized below, the MSRB recently issued a reminder to remind member firms that engage in municipal advisory activities of the obligation to ensure that every Associated Person with your firm that engages in municipal advisory activities is appropriately qualified. Specifically, Associated Persons who engage in municipal advisory activities on behalf of a municipal advisor firm is required to be qualified as a “municipal advisor representative” by passing the Municipal Advisor Representative Qualification Examination (Series 50 exam).
In May 2016, the MSRB announced that the Series 50 exam would be offered beginning in September 2016 and municipal advisor representatives had until September 12, 2017 to satisfy this requirement. Municipal advisor firms were provided a 1-year grace period to ensure that Associated Persons engaging in municipal advisory activities could study for and pass the Series 50 exam without causing disruption to the Firm’s business.
After September 12, 2017, only Associated Persons who have passed the Series 50 exam can engage in municipal advisory activities on behalf of a municipal advisor firm. Additionally, municipal advisor principals — those individuals associated with a municipal advisor who are directly engaged in the management, direction or supervision of the municipal advisory activities of your firm and its Associated Persons — must likewise qualify as a municipal advisor representative by passing the Series 50 exam.
Lastly, an individual who fails to pass the Series 50 exam is only permitted to take the exam again after a period of 30 calendar days has elapsed from the date of the failed examination. An individual who fails to pass the Series 50 exam three times in succession is not permitted to take the exam again until 180 calendar days (six months) have elapsed from the date the individual last failed the exam.
Please review the MSRB’s Regulatory Notice 17-09 for further information.
