Series 79 practice questionmediumBroker-Dealer Registration
An investment bank is expanding its operations to include municipal advisory services. In addition to its existing broker-dealer registration, which additional registration is most likely required?
- ARegistration as a municipal advisor with the SEC and the MSRB✓ Correct answer
- BRegistration as an investment company under the Investment Company Act of 1940
- CRegistration as a transfer agent with the SEC
- DRegistration as a national securities exchange
Explanation
Why A — Registration as a municipal advisor with the SEC and the MSRB
Under the Dodd-Frank Act, firms providing advisory services to municipal entities regarding municipal securities issuances or municipal financial products must register as municipal advisors with both the SEC and the Municipal Securities Rulemaking Board (MSRB). This is a separate registration from broker-dealer registration. The requirement was implemented to ensure proper oversight of advice given to state and local governments on their financing activities.
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