Assortment 53 Definition

What Is the Assortment 53 Exam?

The Assortment 53 exam is a licensing check out that permits an individual to supervise the municipal securities movements of a securities corporate or monetary establishment dealer. The Assortment 53 exam is administered by way of the Financial Industry Regulatory Authority (FINRA) and is among the Municipal Securities Rulemaking Board (MSRB) assessments. The Assortment 53 exam is also known as the Municipal Securities Maximum vital Qualification Examination (MP).

Understanding the Assortment 53 Exam

The Assortment 53 exam qualifies a financial professional to develop into an authorized Municipal Securities Maximum vital. Municipal Securities Principals can underwrite, industry, and buy or advertise municipal securities. The exam moreover we could within the holder to render financial advisory or marketing consultant services and products to issuers of municipal securities, along with we could in communications with customers regarding the aforementioned movements. In addition to, the exam we could within the holder to do the record-keeping, along with the processing, clearing, and safekeeping of municipal securities, and the learning of principals and representatives.

Assortment 53 Exam Questions

The Assortment 53 exam consists of 100 a few variety questions completed over 3 hours. A rating of 70% or upper is had to transfer. Check out-takes don’t seem to be allowed to use any outside reference materials. Question topics quilt now not very best the basics of the best way municipal securities are created and traded however as well as settlement practices, record-keeping, and product sales supervision.

The exam’s questions quilt six topics, that may be broken down into subtopics (see trend questions listed underneath). A whole tick list can be came upon inside the MSRB’s Municipal Maximum vital Qualification Examination (Assortment 53) Content material subject matter Outline:

1. Federal Regulations (4 questions): Understanding the regulatory process and rulemaking corporations, along with the practices that govern the municipal securities business. Moreover, knowledge related to the Securities Change Act of 1934, antifraud provisions, SEC Rules, the Dodd-Frank Wall Aspect street Financial Reform and Consumer Protection Act, the Securities Investor Protection Corporate (SIPC) and its purpose.
2. Elementary Supervision (23 questions): Tasks and rules governing a municipal securities crucial, industry words, registration, qualification and continuing coaching prerequisites, implementation and monitoring of compliance strategies and procedures and disclosures.
3. Product sales Supervision (25 questions): Supervisory tasks, along with rules, listing protecting and approvals needed to open and maintain consumer accounts. Smart knowledge of appropriate investments, along with what is an fallacious or prohibited product sales task. Rules and procedures for coping with purchaser courtroom instances.
4. Origination and Syndication (23 questions): Understanding a dealer’s duties when serving as an marketing consultant to an issuer, defining the advisory dating, documenting it, along with understanding required disclosures and tasks hooked as much as original statements, every as a financial marketing consultant and an underwriter. Moreover, order varieties and their disclosures, control rules related to the serve as of lead manager of a syndicate.
5. Purchasing and promoting (10 questions): Show an understanding of municipal protection quoting rules, record-keeping tasks for crucial and corporate transactions, procedures and timeframes for reporting transactions, understanding tasks related to CUSIP numbers in secondary market purchasing and promoting, and understanding the prohibition against reporting fictitious industry opinions.
6. Operations (15 questions): Understanding what is needed to confirm transactions, the settlement process for trades and the mechanics of provide of securities and the prerequisites for coping with industry or settlement problems. Moreover, understanding what data need to be maintained, along with timeframes for maintaining them.

Assortment 53 Development Questions

The ones trend questions, equipped by way of the MSRB, are similar to the structure and content material subject matter came upon inside the Assortment 53 check out then again don’t seem to be exact check out questions. The answers are equipped underneath.

1. What movement by way of an similar specific particular person of a dealer would explanation why the dealer to be prohibited from sexy in municipal securities business with that issuer?

1. A non-MFP executive officer makes a contribution to an original of the issuer.
2. An MFP contributes $100 to the promoting marketing campaign of an issuer original in a state where he does now not reside.
3. An MFP contributes $250 to the promoting marketing campaign of an issuer original inside the the city where he lives.
4. An similar specific particular person whose municipal securities’ movements are limited to product sales to customers contributes $300 to an issuer original.

2. Reclamation of municipal securities is permitted for one business day following provide for which of the following reasons?

1. If there is a disagreement as to the purchase worth
2. If a discount is discovered to be mutilated
3. If the CUSIP amount is not imprinted on the certificates
4. If the securities transfer into default

3. Which two of the following statements as it should be describe a manager’s duties with recognize to the disclosure of syndicate expenses to account folks?

• I. An itemized statement of anticipated expenses must be equipped prior to the formation of the account.
• II. The volume of the regulate value must be disclosed to the account folks prior to the submission of a bid.
• III. The whole account statement must be furnished now not later than 60 days from the date of provide of all securities by way of the syndicate.
• IV. Each expense, without reference to the quantity, must be listed inside the final account statement.

1. I and III
2. I and IV
3. II and III
4. II and IV

4. Senior managers of municipal securities syndicates must maintain, for each and every syndicate account, books and knowledge that show all of the following wisdom EXCEPT:

1. The words and necessities governing the operation of the syndicate account
2. A reconciliation of the source of revenue and expenses of the syndicate
3. All allotments of those securities to syndicate folks and the associated fee at which purchased
4. The names and addresses of each and every purchaser purchasing securities from a syndicate member

Answers: 1. (2); 2. (2); 3. (3); 4. (4)