In June 2016, the Municipal Securities Rulemaking Board (MSRB) filed a proposed rule change with the Securities Exchange Commission (SEC) to revise the content outline for the Municipal Advisor Representative Qualification Examination (Series 50 exam). The content outline for the Series 50 exam has been amended to reflect changes to the laws, rules and regulations covered by the examination. These amendments also, among other things, incorporate the functions and associated tasks performed by a municipal advisor representative.

MSRB Rule G-3(d) defines a municipal advisor representative as a natural person associated with a municipal advisor who engages in municipal advisory activities on the municipal advisor’s behalf, other than a person performing only clerical, administrative, support or similar functions.

The Series 50 exam content outline has been prepared to assist municipal advisor representative candidates in preparing for the Series 50 examination and is available on the MSRB’s website. The Series 50 examination content outline describes the following five topical sections comprising the examination:

  • Understanding SEC and MSRB Rules Regarding Municipal Advisors
  • Understanding Municipal Finance
  • Performing Issuer’s Credit Analysis and Due Diligence
  • Structuring, Pricing and Executing Municipal Debt Products
  • Understanding Requirements Related to the Issuance of Municipal Debt

As a result of recent rule changes applicable to municipal advisors, the content outline for the Series 50 qualification examination was revised to reflect the current rule requirements and rule citations.  Specifically, citations to MSRB Rules G-20 (Gifts, Gratuities, Non-Cash Compensation and Expenses of Issuance), G-37 (Political Contributions and Prohibitions on Municipal Securities Business and Municipal Advisory Business), and G-42 (Duties of Non-Solicitor Municipal Advisors) were added to the outline. The citation to Rule G-32 (Disclosures In Connection With Primary Offerings) was removed from the outline.

As provided for under MSRB Rule G-3, municipal advisor representatives are required to take and pass the Series 50 in order to engage in municipal advisory activities. The permanent Series 50 examination was available beginning September 12, 2016. To facilitate the transition to the new examination requirement, the MSRB is providing a one-year grace period, ending on September 12, 2017, during which individuals will be able to take the examination while continuing to engage in municipal advisory activities.