A few weeks ago, we wrote a blog highlighting the Municipal Securities Rulemaking Board’s (“MSRB”) proposal for professional qualification standards for municipal advisors Well, the qualification standards are no longer a proposal. Today, the Securities & Exchange Commission (“SEC”) approved the requirement for professional qualification standards for municipal advisors, which will become effective April 27, 2015. The approval amends the following MSRB rules:
- Rule G-1 - Separately Identifiable Department or Division of a Bank
- Rule G-2 - Standards of Professional Qualification
- Rule G-3 - Professional Qualification Requirements
- Rule D-13 - Municipal Advisory Activities
Click here to get a full text of the amendments.
The qualification exam required under the amended rules, referred to as the “Series 50” examination, will be applicable to any individual who is considered a “municipal advisor representative” engaging in municipal advisory activities, and a “municipal advisor principal” responsible for the management and/or supervision of the activities of the firm and its associated persons.
The MSRB is expected to rollout a pilot test later this year. According to the Regulatory Notice issued by the MSRB, “Individuals who pass the pilot test will be qualified to act as municipal advisor representatives or principals, as if they had passed the permanent test.”
Anyone interested in taking the pilot test can subscribe to an email distribution list on the MSRB’s website to learn more about the pilot test.