SIE practice questionhardMunicipal Bonds
Which market participant is subject to MSRB rules but not to SEC registration as a dealer?
- AA bank municipal securities dealer✓ Correct answer
- BA registered broker-dealer trading corporate bonds
- CA mutual fund company
- DA public pension plan
Explanation
Why A — A bank municipal securities dealer
Banks dealing in municipal securities are subject to MSRB but generally not required to register with the SEC as dealers. Broker-dealers (B) must register. Mutual funds (C) and pension plans (D) are not municipal dealers.
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