What Is the Collection 51 Exam?
The Collection 51 is a financial exam for professionals wishing to advertise municipal fund securities or oversee the sale of such securities.
The exam’s whole establish is the Municipal Fund Securities Limited Major Qualification Examination, and it is jointly overseen by means of two financial regulators: the Financial Industry Regulatory Authority (FINRA), and the Municipal Securities Rulemaking Board (MSRB).
Key Takeaways
- Collection 51 is a financial exam administered by means of FINRA and the MSRB.
- It is focused on the sale of municipal fund securities.
- The Collection 51 exam normally takes 90 minutes to complete, with a luck candidates taking about 20 hours to organize, on cheap.
How the Collection 51 Exam Works
The purpose of the Collection 51 exam is to make a decision whether or not or now not the candidate meets the MSRB’s {{qualifications}} for professionals engaged inside the sale or oversight of municipal fund securities. In observe, this involves checking out applicants on their knowledge of the MSRB’s rules and regulations, along with understanding how those rules have been interpreted particularly real-world scenarios. To take the exam, candidates must have first passed the Collection 24 or Collection 26 assessments.
The Collection 51 used to be as soon as established for principals who do not another way deal in municipal securities and do not have the Collection 53 supervisory designation. Exam topics will test the taker’s knowledge of underwriting, product sales place of job supervision, market terminology, and ethical guidelines. Once they have got passed the Collection 51 exam and met all additional must haves, candidates can be authorized to underwrite, business, and advertise municipal securities. Other duties, harking back to effectively talking with customers about conceivable trades, maintaining thorough knowledge of earlier transactions, and training other professionals, are also coated inside the Collection 51 exam.
The Collection 51 exam places explicit emphasis on tax-exempt investment vehicles such for the reason that Phase 529 plan. The ones investment vehicles, popularly referred to as “qualified tuition plans,” are a popular technique to save for longer term tuition and other educational expenses. Although many 529 plans include equity securities, the ones plans are however regulated by means of the MSRB and are built-in inside the Collection 51 curriculum.
The Collection 51 exam consists of 60 multiple-choice questions, where each and every proper answer is price one degree. Because of there’s no penalty for guessing, candidates are impressed to fill out all answers inside the test. To go the test, candidates must achieve a score of 70% or higher.
Typically, candidates must commit about 20 hours of finding out so that you could go the Collection 51 exam. The test itself lasts 90 minutes, far and wide which no reference materials are allowed. Although its questions point of interest basically on the knowledge of explicit financial products, other remarkable topics include the supervisory duties of execs inside the field, laws for navigating conflicts of interest, and the business’s regulatory development.
