Series 54 key terms

Self-regulatory organization that writes rules governing dealers and municipal advisors in the municipal securities market, including municipal fund securities; it does not enforce them-FINRA and bank regulators do.

Securities issued by a state or local government entity that are sold to the public and held in a fund structure, such as 529 savings plans, ABLE programs, and local government investment pools.

State-sponsored investment program that lets people save for education expenses with tax-deferred growth and tax-free withdrawals for qualified education costs; the state selects a program manager to administer investments.

State-sponsored program allowing eligible individuals with disabilities to save in tax-advantaged accounts without losing means-tested benefits; accounts are municipal fund securities managed by a program manager.

Pooled investment vehicle created by a state or local government to invest public funds of participating government entities; it issues shares or interests that are municipal fund securities.

Disclosure document prepared for a primary offering of municipal securities, including municipal fund securities, describing the issuer, program, risks, fees, and investment options.

Requires a bank dealer to keep its municipal securities activities separate from its other banking business, with separate books and records, so regulators can identify municipal securities transactions.

Sets qualification requirements for municipal securities principals and representatives, including exams and continuing education, and requires firms to ensure only qualified people perform those functions.

Requires dealers to obtain and keep employment and disciplinary history information for associated persons, and to review it before hiring or associating a person with municipal securities activities.

Prescribes books and records that dealers must make and keep for municipal securities activities, including customer records, orders, confirmations, and supervisory records.

Sets preservation periods for records required by Rule G-8, generally six years for most records, with the first two years easily accessible.

Requires dealers to deliver the MSRB investor brochure to customers and to inform them about the MSRB's investor complaint process.

Requires dealers to send written confirmations of municipal securities transactions to customers, disclosing trade details, price, and other required information.

Imposes a duty of fair dealing on dealers, requiring honest and fair treatment of customers, full disclosure of material facts, and no deceptive or unfair practices.

Requires dealers to recommend municipal securities only when they have reasonable grounds to believe the recommendation is suitable for the customer based on the customer's financial situation and objectives.

Limits gifts, gratuities, and non-cash compensation that dealers and their associated persons may give to or receive from others in connection with municipal securities business.

Governs advertising and marketing by dealers, prohibiting false or misleading statements and requiring fair and balanced presentation of municipal fund securities products and their risks.

Requires dealers to supervise their municipal securities activities, including written supervisory procedures, review of transactions and correspondence, and designation of supervisors.

Requires that prices and commissions charged to customers in municipal securities transactions be fair and reasonable, taking into account market conditions and the services provided.

Requires dealers acting as underwriters to submit official statements and related disclosure documents to the MSRB and to deliver them to customers in primary offerings.

Prohibits dealers from engaging in municipal securities business with an issuer for two years after certain political contributions to issuer officials, and requires disclosure of contributions.

Requires municipal advisors to adopt written supervisory and compliance policies and procedures reasonably designed to ensure compliance with MSRB rules and applicable securities laws.

An individual who is employed by or associated with a dealer or municipal advisor and who is involved in municipal securities activities, including representatives, principals, and supervisors.

A person who provides advice to or on behalf of a municipal entity or obligated person about municipal financial products or the issuance of municipal securities, and who is regulated by the MSRB.

A qualified supervisor at a dealer who is responsible for reviewing and approving municipal securities activities, including transactions, advertising, and supervisory tasks.

A qualified individual who solicits, sells, or effects transactions in municipal securities on behalf of a dealer, including municipal fund securities.

Practice in which political contributions to issuer officials are used to influence the award of municipal securities business; MSRB Rule G-37 restricts it.

A small political contribution to an issuer official that is permitted under MSRB Rule G-37 and does not trigger the two-year ban, subject to dollar limits and eligibility to vote.

The process by which a dealer or municipal advisor oversees the conduct of its associated persons, including written procedures, review, and follow-up, to ensure compliance with rules and protect customers.

Any material published or distributed to the public by a dealer or its associated persons to promote municipal fund securities, including websites, social media, and sales literature, subject to Rule G-21.

The determination that a recommended municipal fund security is appropriate for a particular customer based on the customer's investment objectives, financial situation, and needs.

Written notice sent to a customer after a municipal securities transaction that shows the security, price, amount, date, and other required details.

The requirement to keep books and records for specified periods under MSRB rules, generally six years, with certain records kept readily accessible for the first two.

MSRB publication that explains municipal securities, risks, and how to file a complaint; dealers must deliver it to customers under Rule G-10.

A written or oral grievance from a customer about a dealer's municipal securities activities; firms must log, investigate, and respond, and use complaints in supervision.

Expenses for tuition, fees, books, supplies, and certain room and board that qualify for tax-free 529 withdrawals.

Expenses related to the eligible individual's disability, such as education, housing, transportation, and health care, that qualify for tax-free ABLE withdrawals.

A person who qualifies to open an ABLE account because their disability began before age 26 and they meet the program's certification requirements.

The investment firm or financial institution selected by a state to administer the investments, records, and customer servicing for a 529 or ABLE program.

Written guidelines adopted by an LGIP's governing body that set permitted investments, credit quality, maturity limits, and liquidity requirements for the pool.