Series 53 flashcards

33 cards. Read the term and the definition here. The deck at the top of this page is optional.

Rule G-27

MSRB rule requiring dealers to establish written supervisory procedures, designate supervisors, and review activities to prevent municipal securities violations.

Municipal securities principal

Qualified person under MSRB Rule G-3 who supervises municipal securities activities and has passed the Series 53 examination.

Rule G-20 gift limit

MSRB rule limiting gifts to $100 per person per year and restricting non-cash compensation; gifts must be recorded.

Rule G-37 two-year ban

MSRB rule barring municipal securities business with an issuer for two years after certain covered associates make political contributions to issuer officials.

Rule G-38 placement agent

MSRB rule requiring written agreements and records when a dealer pays a non-affiliated person to obtain municipal securities business.

Rule G-17 fair dealing

MSRB rule prohibiting deceptive, misleading, or unfair practices and requiring disclosure of material conflicts and compensation.

Rule G-21 advertising approval

MSRB rule requiring principal approval of municipal securities advertising and records of approval and distribution.

Official statement

Disclosure document for a municipal bond offering; issuer is responsible for content, and underwriter must perform due diligence.

Rule G-32 EMMA submission

MSRB rule requiring underwriters to submit official statements and related primary offering documents to the MSRB's EMMA system.

SEC Rule 15c2-12

Rule requiring underwriters to obtain continuing disclosure undertakings from issuers and reasonably determine that issuers will comply.

Continuing disclosure event notice

Notice of specified events such as rating changes or defaults, generally due within 10 business days after the event.

Rule G-34 CUSIP

MSRB rule requiring CUSIP numbers for new municipal issues and governing applications for those identifiers.

Competitive underwriting

Sale method where issuer awards bonds to the syndicate submitting the best bid, often measured by lowest true interest cost.

Agreement among underwriters

Contract setting syndicate members' participation, order priorities, fees, and liability for a negotiated municipal bond offering.

Rule G-18 best execution

MSRB rule requiring dealers to use reasonable diligence to obtain the best execution of customer municipal securities orders.

Rule G-19 suitability

MSRB rule requiring recommendations to be suitable both on a reasonable-basis and customer-specific basis.

Rule G-30 fair pricing

MSRB rule requiring fair and reasonable prices and commissions and disclosure of markups on retail principal transactions.

Rule G-15 confirmation

MSRB rule requiring customer trade confirmations to disclose CUSIP, price, yield, capacity, compensation, and settlement date.

Rule G-14 RTRS

MSRB rule requiring dealers to report municipal securities trades to the Real-Time Transaction Reporting System within 15 minutes of execution.

Markup

Difference between the price charged to a customer and the dealer's cost or the prevailing market price for the security.

Rule G-21 advertising

MSRB rule governing municipal securities advertising, requiring principal approval and recordkeeping for advertisements.

529 plan

Qualified tuition program whose interests are municipal fund securities; earnings grow tax-deferred and qualified withdrawals are federally tax-free.

Municipal fund securities

Securities such as 529 plan interests and local government investment pools that are issued by municipal entities and subject to MSRB rules.

529 suitability factors

State tax benefits, fees, beneficiary age, investment options, risk tolerance, and residency are relevant to recommending a 529 plan.

LGIP

Local government investment pool, a municipal fund security that pools public funds and is subject to MSRB disclosure and sales rules.

Rule G-45 reporting

MSRB rule requiring program managers to report information about municipal fund securities such as 529 plans to the MSRB.

529 nonqualified withdrawal

Withdrawal not used for qualified education expenses; earnings are taxable and generally subject to a 10% federal penalty.

Rule G-8 books

MSRB rule specifying records dealers must keep, including order tickets, confirmations, complaints, advertising, and political contribution records.

Rule G-9 preservation

MSRB rule requiring records to be preserved for at least three years, with the first two years easily accessible.

Series 53

Qualification examination for municipal securities principals who supervise municipal securities activities under MSRB Rule G-3.

AML program

Required anti-money-laundering program including policies, a compliance officer, training, and independent testing for municipal securities dealers.

EMMA

MSRB's Electronic Municipal Market Access system for municipal disclosure, official statements, and continuing disclosure filings.

RTRS

MSRB's Real-Time Transaction Reporting System, which receives municipal securities trade reports within 15 minutes of execution.