MSRB Rules Governing Municipal Securities
Chapters in this video
- 0:00 Who enforces MSRB rules: the writers versus the fighters
- 1:43 Bona fide quotes and the nominal label trap
- 2:54 Fair dealing extends to issuers, not just customers
- 3:46 Fair pricing for principal and agency transactions
- 4:41 Employee accounts: written notice and duplicate confirmations
- 5:58 The hard ban on paying unaffiliated solicitors
- 6:39 Municipal fund securities reporting: 529s, ABLE accounts, and LGIPs
- 8:06 Rapid-fire exam recap
What this video covers
- Why the MSRB writes rules but has zero enforcement authority, and which three regulators actually police dealers
- How an unlabeled quote is automatically treated as bona fide, and when you must label a quote as nominal
- What the fair-dealing rule requires in negotiated underwritings, including disclosure of material risks and conflicts of interest to issuers
- Why fair pricing covers both principal transactions (markups and markdowns) and agency transactions (commissions)
- The written notice and duplicate confirmation flow for employee accounts at outside dealers, and the municipal fund securities exception
- Why paying unaffiliated solicitors for municipal securities business is prohibited, while paying your own registered employees is permitted
- How 529 plan and ABLE account reporting differs from ordinary municipal bond trade reporting, and why LGIPs are excluded
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