Series 50 study guide
Series 50 · Work through your exam, one topic at a time.
The Series 50 - formally the Municipal Advisor Representative Qualification Examination - is the entry-level qualification for individuals who provide municipal advisory services to state and local government issuers, or who solicit issuer business on behalf of a municipal advisory firm. It is administered by the Municipal Securities Rulemaking Board, and a candidate must be associated with and sponsored by an MSRB-registered municipal advisory firm in order to sit for it. The Series 50 study guide has 6 sections and about 1,903 words.
01Standards of Conduct, Fiduciary Duty, and Professional Ethics
MSRB Rule G-42(a) makes a municipal advisor a fiduciary of its municipal entity client. The duty runs to the municipal entity and to no one else - not to the underwriter, not to investors, and not to the conduit borrower on a 501(c)(3) or housing deal.
318 words, about 2 min02Municipal Advisory Activities, Engagements, and Documentation
Rule G-42(b) requires a municipal advisor to evidence its engagement in writing before, or promptly after, the start of municipal advisory activities. The writing is not a formality - it is the first document examiners and enforcement attorneys read, and it defines the scope of the fiduciary duty.
307 words, about 2 min03Municipal Securities and Municipal Finance
General obligation bonds pledge the issuer's full faith and credit and, where applicable, its taxing power; revenue bonds are payable solely from a defined revenue stream and flow of funds. Know the hybrids: special assessment, tax increment, lease/appropriation (COPs), conduit 501(c)(3) and multifamily housing bonds where the municipal entity is only a conduit and the credit is the borrower's, and double-barrel structures.
308 words, about 2 min04Municipal Financial Products and Derivatives
“Municipal financial products” under the Exchange Act include municipal derivatives, guaranteed investment contracts, and investment strategies. Swaps, swaptions, caps, floors, and forwards tied to municipal securities can all qualify.
319 words, about 2 min05Federal Securities Laws, MSRB Rules, and Regulatory Requirements
Exchange Act Section 15B is the foundation. It authorized the MSRB, required municipal advisors to register with the SEC, and preserved the Tower Amendment: issuers are not required to file with the SEC, and the MSRB cannot require issuers to make filings.
314 words, about 2 min06Registration, Compliance, Supervision, and Recordkeeping
A firm registers as a municipal advisor on SEC Form MA, and each natural person who engages in municipal advisory activities on its behalf is listed on Form MA-I. Registration is not complete until it is also effective with the MSRB.
337 words, about 2 min