The SEC recently approved a proposal by the Municipal Securities Rulemaking Board (MSRB) to require qualification examinations for professionals employed by a registered municipal advisor (MA).

The new MSRB regulations establish examination requirements for persons who serve an MA as either a principal or representative. MAs are required to have at least one person designated as a principal to conduct supervisory activities over the MA’s municipal advisory activities.

The examinations are expected to be available some time in 2016 after a test pilot period later this year. The amended MSRB Rules G-2 and G-3 provide a one-year grace period during which individuals will be able to take the required examination but still be able to perform municipal advisory activities during that one-year period. An earlier proposal by the MSRB to require representatives to perform 90 days of apprenticeship before they would conduct municipal advisory activities has been abandoned.