🏛️ MSRB Rules and Regulations – Series 7 Exam

The Series 7 exam—the General Securities Representative Qualification Examination—tests candidates on a broad range of securities knowledge, including Municipal Securities Rulemaking Board (MSRB) rules. Understanding MSRB rules is crucial for passing the exam and operating ethically in the municipal securities market.

This guide outlines key MSRB regulations you must know for the Series 7 exam.

📘 What Is the MSRB?

The Municipal Securities Rulemaking Board (MSRB) is a self-regulatory organization that creates rules for:

• Broker-dealers who underwrite, trade, and sell municipal securities
• Bank dealers in municipal securities
• Municipal advisors providing advice to municipal entities

Important: The MSRB writes rules but does not enforce them. Enforcement is carried out by FINRA, the SEC, bank regulators, and other agencies.

📜 Key MSRB Rules to Know for Series 7

🧑‍💼 Rule G-2: Standards of Professional Qualification

• Only properly qualified individuals may engage in municipal securities activities.
• Candidates must pass exams like Series 52 or Series 7.

📄 Rule G-3: Professional Qualification Requirements

• Describes exams required for municipal securities representatives and principals.
• Continuing education requirements must be met.

📈 Rule G-7: Information Concerning Associated Persons

• Requires firms to maintain employment records on representatives.
• Information must be updated as necessary.

🛡️ Rule G-17: Conduct of Municipal Securities Activities

• Requires dealers to deal fairly with all persons and avoid deceptive practices.
• Core principle: Fair dealing without regard to wealth or sophistication.

🤝 Rule G-19: Suitability of Recommendations

• Firms must make reasonable efforts to determine a customer’s:
  • Investment profile
  • Financial status
  • Tax status
  • Investment objectives

📣 Rule G-21: Advertising

• Advertisements must be truthful and not misleading.
• Principal approval required prior to use.
• Applies to product brochures, online ads, form letters, and social media.

📑 Rule G-30: Prices and Commissions

• Dealers must sell municipal securities at a fair and reasonable price.
• Markups and markdowns must also be fair.

💬 Rule G-32: Disclosures in Connection with New Issues

• Requires delivery of the Official Statement (similar to a prospectus) to customers buying new municipal issues.

🔄 Rule G-37: Political Contributions and Prohibitions

• Limits political contributions by municipal dealers to avoid pay-to-play practices.
• Contribution limits apply to municipal finance professionals (MFPs).

⚖️ MSRB Enforcement Agencies

🧠 Key Exam Tips

• Know that fair dealing (Rule G-17) is a fundamental principle across all municipal activity.
• Understand that suitability is always required, even when executing unsolicited transactions.
• Be clear that the MSRB writes rules but does not enforce them.
• Expect questions on the Official Statement and disclosure obligations under Rule G-32.

📚 Quick Facts Summary

🎯 Master MSRB rules and full Series 7 exam content with guided lessons, timed practice exams, and detailed regulatory drills at
👉 finra-exam-mastery.com