Series 53 study guide
Series 53 · Work through your exam, one topic at a time.
The Series 53 - Municipal Securities Principal Qualification Examination - is a multiple-choice qualification exam for professionals who supervise municipal securities activities at a securities firm. It is aimed at principals and supervisors rather than entry-level representatives: people who review municipal underwritings, approve municipal trading and sales activity, oversee municipal fund securities business, and maintain the related supervisory and recordkeeping controls. The Series 53 study guide has 5 sections and about 1,814 words.
01Supervision of Municipal Securities Activities
MSRB Rule G-27 is the backbone of this domain. Every dealer must adopt written supervisory procedures (WSPs) reasonably designed to achieve compliance with MSRB rules and the federal securities laws, and must designate one or more municipal securities principals (a Series 53 holder) with authority to carry them out.
340 words, about 2 min02Municipal Securities Issuance and Underwriting
In a primary offering the underwriter's duties run three ways: to the issuer (due diligence and a reasonable basis for the offering price), to the market (SEC Rule 15c2-12), and to customers (MSRB disclosure rules). Under 15c2-12, before bidding for or purchasing a primary offering of $1,000,000 or more, the underwriter must reasonably determine that the issuer has agreed in writing to provide annual financial information and event notices; the final official statement must reach the underwriter no later than seven business days after the date of the final agreement to purchase or sell.
391 words, about 2 min03Municipal Securities Trading and Sales
The governing standard is fair dealing. MSRB Rule G-30 requires that markups and markdowns in principal transactions be fair and reasonable , measured from the prevailing market price - what the security is worth in the interdealer market - not from the dealer's own cost.
383 words, about 2 min04Municipal Fund Securities and Other Products
Interests in Section 529 qualified tuition programs and local government investment pools (LGIPs) are municipal fund securities - municipal securities for MSRB purposes, but governed by tailored rules. There is no official statement, no CUSIP, and no traditional continuing-disclosure filing; instead the plan's disclosure document, plus periodic disclosure filed with EMMA under Rule G-45 for 529 plans, does the work.
330 words, about 2 min05Compliance, Recordkeeping, and Regulatory Reporting
Rule G-8 lists the records a municipal securities dealer must make and keep; SEC Rules 17a-3 and 17a-4 govern content and retention - generally six years, with the most recent two readily accessible. Covered records include order tickets, confirmations, customer account information, correspondence, complaint files, supervisory review logs, and syndicate records.
370 words, about 2 min