On November 3rd, the SEC approved the Municipal Securities Rulemaking Board's proposed amendments to Rule G-3 on professional qualifications, and Rule G-7 on information concerning associated persons. The changes to Rule G-3 provide that the FINRA Series 7 examination would no longer qualify individuals as "municipal securities representatives" unless they were engaged solely in sales activities or they passed the Series 7 examination prior to the effective date of this rule change. Instead, passage of the Series 52 examination would be required for any municipal securities activities other than sales activities. Rule G-7 requires brokers, dealers and municipal securities dealers to keep records concerning their associated persons, including the category of function they perform "whether municipal securities principal, municipal securities sales principal, municipal securities representative or financial and operations principal." The amendment to Rule G-7 adds "municipal securities sales limited representative" to that list. The amendment also streamlines Rule G-7(b) by requiring that dealers obtain either Form U4 (in the case of non-bank dealers) or Form MSD-4 (in the case of bank dealers), rather than repeating the categories of information required by those forms. SEC Release No. 34-65679.
- How-to guide How-to guide: The appointed representatives regime explained - what it means in practice (UK)
- Checklist Checklist: Pre-appointment checks to consider when selecting an appointed representative (UK)
- How-to guide How-to guide: The general prohibition – beware the consequences of breach (UK)