REGS MSRB EXAM WITH COMPLETE SOLUTIONS 100%
VERIFIED!!!! ALREADY GRADED A+
Under the Securities Acts of 1975, the Municipal Securities Rulemaking Board was created and
empowered to regulate the:
I disclosure of new information by municipal issuers
II recordkeeping and settlement procedures of municipal broker-dealers
III profit levels achieved by municipal broker-dealers
Incorrect Answer A. I only
Correct Answer B. II only
StatusC C. II and III
StatusD D. I, II, III - (answer)The best answer is B. The MSRB is empowered to regulate municipal market
participants - municipal brokers, dealers, and banks that deal in municipal bonds. The MSRB has no
power to regulate municipal issuers, making Choice I false. The MSRB does not regulate profit levels,
making Choice III false.
The Securities Acts Amendments of 1975 which established the Municipal Securities Rulemaking Board
allow the MSRB to do all of the following EXCEPT create regulations:
StatusA A. covering municipal related recordkeeping
StatusB B. covering delivery of disclosure documents on new issues (Official Statements)
Correct C. setting maximum mark-ups and commissions
StatusD D. regarding permitted gifts to persons where the gift is related to the municipal securities
business - (answer)The best answer is C. The MSRB is empowered to create regulations for participants
in the municipals market, but has no enforcement power. Enforcement is performed by the banking and
securities regulators. The MSRB has set rules related to municipal recordkeeping and disclosure. It also
sets rules for the conduct of municipal securities representatives - including imposing a $100 gift limit
similar to that of FINRA. There are no rules setting maximum mark-ups, since this would be anti-
competitive; but there are rules for determining "fair" mark-ups and commissions.
The MSRB regulates which of the following?
,REGS MSRB EXAM WITH COMPLETE SOLUTIONS 100%
VERIFIED!!!! ALREADY GRADED A+
I Municipal bank dealers
II Municipal brokers
III Municipal issuers
StatusA A. I only
StatusB B. II only
Correct C. I and II
StatusD D. I, II, III - (answer)The MSRB has no authority over municipal issuers. It regulates municipal
brokers and dealers, including bank dealers in the municipal market.
Which statement is TRUE regarding the enforcement of MSRB rules for broker-dealers?
StatusA A. Enforcement of MSRB rules for registered broker-dealers is performed by the MSRB
Correct B. Enforcement of MSRB rules for registered broker-dealers is performed by FINRA
StatusC C. Enforcement of MSRB rules for registered broker-dealers is performed by the FDIC
StatusD D. Enforcement of MSRB rules for registered broker-dealers is performed by the FRB -
(answer)The enforcement agencies for the MSRB are: Office of the Comptroller of Currency, Federal
Deposit Insurance Corporation, and the Federal Reserve Board for bank dealers that are not registered
with FINRA and the SEC and thus are only subject to inspection by the bank regulators; and the SEC and
FINRA for registered broker-dealers.
Enforcement of regulations regarding trading of municipal securities, as they apply to banks that are NOT
members of a "self-regulatory organization" as defined under the Securities Exchange Act of 1934, is
performed by (the):
StatusA A. NYSE
Incorrect Answer B. FINRA
StatusC C. MSRB
, REGS MSRB EXAM WITH COMPLETE SOLUTIONS 100%
VERIFIED!!!! ALREADY GRADED A+
Correct Answer D. FDIC - (answer)Enforcement of MSRB rules for bank dealers that are not registered as
broker-dealers with FINRA is performed by the bank regulatory bodies - the Office of Comptroller of
Currency; the Federal Reserve; and the Federal Deposit Insurance Corporation.
All of the following enforce MSRB rules for bank dealers EXCEPT:
StatusA A. Office of the Comptroller of Currency
StatusB B. Federal Deposit Insurance Corporation
StatusC C. Federal Reserve Board
Correct D. Office of Thrift Supervision - (answer)The enforcement agencies for the MSRB are: Office of
the Comptroller of Currency, Federal Deposit Insurance Corporation, and the Federal Reserve Board for
bank dealers that are not registered with FINRA and the SEC and thus are only subject to inspection by
the bank regulators; and the SEC and FINRA for registered broker-dealers.
The OTS - Office of Thrift Supervision, supervised Savings and Loans - and savings and loans do not deal
in the municipal marketplace. It was created to deal with a savings and loans crisis that erupted in the
1980's and since has been folded into the Office of Comptroller of Currency.
Under MSRB rules, all of the following statements are true about a registered representative sharing in a
customer account EXCEPT the:
StatusA A. registered representative must receive approval to do so from the principal
StatusB B. registered representative must share only in proportion to the capital contributed
StatusC C. registered representative must share in both gain and loss
Correct D. MSRB must be notified in advance of the sharing arrangement - (answer)Sharing in a
customer account is prohibited unless the registered representative gets written approval for the
account from the principal; opens a joint account with the customer; and shares in gain and loss in
proportion to the capital contributed. There is no requirement to give notice of such an arrangement to
the MSRB - if this were the case, the MSRB couldn't do anything about it anyway since they do not
enforce their rules (enforcement for broker-dealers is performed by FINRA).
Under MSRB rules, a registered representative can perform all of the following functions EXCEPT:
VERIFIED!!!! ALREADY GRADED A+
Under the Securities Acts of 1975, the Municipal Securities Rulemaking Board was created and
empowered to regulate the:
I disclosure of new information by municipal issuers
II recordkeeping and settlement procedures of municipal broker-dealers
III profit levels achieved by municipal broker-dealers
Incorrect Answer A. I only
Correct Answer B. II only
StatusC C. II and III
StatusD D. I, II, III - (answer)The best answer is B. The MSRB is empowered to regulate municipal market
participants - municipal brokers, dealers, and banks that deal in municipal bonds. The MSRB has no
power to regulate municipal issuers, making Choice I false. The MSRB does not regulate profit levels,
making Choice III false.
The Securities Acts Amendments of 1975 which established the Municipal Securities Rulemaking Board
allow the MSRB to do all of the following EXCEPT create regulations:
StatusA A. covering municipal related recordkeeping
StatusB B. covering delivery of disclosure documents on new issues (Official Statements)
Correct C. setting maximum mark-ups and commissions
StatusD D. regarding permitted gifts to persons where the gift is related to the municipal securities
business - (answer)The best answer is C. The MSRB is empowered to create regulations for participants
in the municipals market, but has no enforcement power. Enforcement is performed by the banking and
securities regulators. The MSRB has set rules related to municipal recordkeeping and disclosure. It also
sets rules for the conduct of municipal securities representatives - including imposing a $100 gift limit
similar to that of FINRA. There are no rules setting maximum mark-ups, since this would be anti-
competitive; but there are rules for determining "fair" mark-ups and commissions.
The MSRB regulates which of the following?
,REGS MSRB EXAM WITH COMPLETE SOLUTIONS 100%
VERIFIED!!!! ALREADY GRADED A+
I Municipal bank dealers
II Municipal brokers
III Municipal issuers
StatusA A. I only
StatusB B. II only
Correct C. I and II
StatusD D. I, II, III - (answer)The MSRB has no authority over municipal issuers. It regulates municipal
brokers and dealers, including bank dealers in the municipal market.
Which statement is TRUE regarding the enforcement of MSRB rules for broker-dealers?
StatusA A. Enforcement of MSRB rules for registered broker-dealers is performed by the MSRB
Correct B. Enforcement of MSRB rules for registered broker-dealers is performed by FINRA
StatusC C. Enforcement of MSRB rules for registered broker-dealers is performed by the FDIC
StatusD D. Enforcement of MSRB rules for registered broker-dealers is performed by the FRB -
(answer)The enforcement agencies for the MSRB are: Office of the Comptroller of Currency, Federal
Deposit Insurance Corporation, and the Federal Reserve Board for bank dealers that are not registered
with FINRA and the SEC and thus are only subject to inspection by the bank regulators; and the SEC and
FINRA for registered broker-dealers.
Enforcement of regulations regarding trading of municipal securities, as they apply to banks that are NOT
members of a "self-regulatory organization" as defined under the Securities Exchange Act of 1934, is
performed by (the):
StatusA A. NYSE
Incorrect Answer B. FINRA
StatusC C. MSRB
, REGS MSRB EXAM WITH COMPLETE SOLUTIONS 100%
VERIFIED!!!! ALREADY GRADED A+
Correct Answer D. FDIC - (answer)Enforcement of MSRB rules for bank dealers that are not registered as
broker-dealers with FINRA is performed by the bank regulatory bodies - the Office of Comptroller of
Currency; the Federal Reserve; and the Federal Deposit Insurance Corporation.
All of the following enforce MSRB rules for bank dealers EXCEPT:
StatusA A. Office of the Comptroller of Currency
StatusB B. Federal Deposit Insurance Corporation
StatusC C. Federal Reserve Board
Correct D. Office of Thrift Supervision - (answer)The enforcement agencies for the MSRB are: Office of
the Comptroller of Currency, Federal Deposit Insurance Corporation, and the Federal Reserve Board for
bank dealers that are not registered with FINRA and the SEC and thus are only subject to inspection by
the bank regulators; and the SEC and FINRA for registered broker-dealers.
The OTS - Office of Thrift Supervision, supervised Savings and Loans - and savings and loans do not deal
in the municipal marketplace. It was created to deal with a savings and loans crisis that erupted in the
1980's and since has been folded into the Office of Comptroller of Currency.
Under MSRB rules, all of the following statements are true about a registered representative sharing in a
customer account EXCEPT the:
StatusA A. registered representative must receive approval to do so from the principal
StatusB B. registered representative must share only in proportion to the capital contributed
StatusC C. registered representative must share in both gain and loss
Correct D. MSRB must be notified in advance of the sharing arrangement - (answer)Sharing in a
customer account is prohibited unless the registered representative gets written approval for the
account from the principal; opens a joint account with the customer; and shares in gain and loss in
proportion to the capital contributed. There is no requirement to give notice of such an arrangement to
the MSRB - if this were the case, the MSRB couldn't do anything about it anyway since they do not
enforce their rules (enforcement for broker-dealers is performed by FINRA).
Under MSRB rules, a registered representative can perform all of the following functions EXCEPT:
