By Cyril Tuohy
Proposed “uniform standards of competency” for municipal advisors would establish two classes of municipal advisor professionals and would require each to pass a qualification test, the Municipal Securities Rulemaking Board (MSRB) has announced.
The rules are part of the MSRB’s proposal to create baseline standards for professional qualification in the municipal securities market. The Dodd-Frank Wall Street Reform and Consumer Protection Act charged the MSRB with developing the standards.
“The creation of uniform standards of competency will help ensure municipal advisors engaged in advisory work are qualified for their duties,” MSRB executive director Lynnette Kelly said in a news release.
MSRB officials have proposed to amend Rule G-3 and establish two classifications for municipal advisors: representative and principal. Advisory firms would be required to designate at least one principal to oversee the municipal advisory activities of the firm.
Each municipal advisor representative and principal would have to pass a test; a pilot exam is planned for next year, the MSRB said.
“Given the significant changes that accompany a new regulatory regime," Kelly said, "the MSRB believes it is important for all municipal advisor representatives, regardless of their years of experience or other certifications, to take the exam.”
Cyril Tuohy is a writer based in Pennsylvania. He has covered the financial services industry for more than 15 years. Cyril may be reached at firstname.lastname@example.org.
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