Series 51 study guide
Series 51 · Work through your exam, one topic at a time.
The Series 51 - formally the Municipal Fund Securities Limited Principal Qualification Examination (FP) - is a Municipal Securities Rulemaking Board (MSRB) exam delivered through FINRA's qualification exam program. It is the limited-principal-level qualification tied to municipal fund securities activity, and FINRA's page points candidates to the MSRB's Professional Qualification page for the content outline, because the MSRB publishes the detailed topic breakdown rather than FINRA. Candidates should treat the MSRB outline, not third-party summaries, as the authoritative scope document. On FINRA's page the exam is multiple choice with 60 scored questions plus five unscored pretest questions distributed at random, a passing score of 70%, and a cost of $255. The Series 51 study guide has 4 sections and about 1,219 words.
01Municipal Fund Securities: Products, Structure, and Markets
Municipal fund securities are municipal securities issued by a state, local government, or instrumentality whose proceeds are pooled or invested in a fund. The main types tested are 529 college savings plans, ABLE disability savings programs, and local government investment pools (LGIPs).
338 words, about 2 min02Sales, Distribution, and Marketing Practices for Municipal Fund Securities
Recommendations in municipal fund securities are subject to MSRB Rule G-19 suitability and Rule G-17 fair dealing. The dealer must understand the product, the customer's financial situation, tax status, time horizon, and state residency.
310 words, about 2 min03Supervision and Compliance of Municipal Fund Securities Activities
MSRB Rule G-27 requires a dealer to adopt written supervisory procedures (WSPs) reasonably designed to achieve compliance. A municipal securities principal must supervise municipal fund securities activities, review transactions, and conduct annual compliance reviews.
284 words, about 1 min04MSRB Rules and Federal Securities Law Governing Municipal Fund Securities
Municipal fund securities are municipal securities under MSRB Rule D-12. They are exempt from Securities Act registration under Section 3(a)(2) and from Exchange Act registration, but antifraud provisions apply: Section 17(a) of the Securities Act and Section 10(b) and Rule 10b-5 of the Exchange Act.
287 words, about 1 min