Series 53

What Is the Series 53 Exam?

The Series 53 exam is a licensing test that permits an individual to regulate the municipal securities activities of a securities firm or bank dealer. The Series 53 exam is administered by the Financial Industry Regulatory Authority (FINRA) and is one of numerous Municipal Securities Rulemaking Board (MSRB) exams. The Series 53 exam is otherwise called the Municipal Securities Principal Qualification Examination (MP).

Figuring out the Series 53 Exam

The Series 53 exam qualifies a financial professional to turn into a licensed Municipal Securities Principal. Municipal Securities Principals can guarantee, trade, and buy or sell municipal securities. The exam likewise permits the holder to deliver financial advisory or consultant services to issuers of municipal securities, as well as permits communications with customers about the previously mentioned activities. Moreover, the exam permits the holder to do the record-keeping, as well as the processing, clearing, and safekeeping of municipal securities, and the training of principals and representatives.

Series 53 Exam Questions

The Series 53 exam comprises of 100 numerous decision questions completed more than three hours. A score of 70% or better is required to pass. Test-takes are not permitted to utilize any outside reference materials. Question subjects cover not just the fundamentals of how municipal securities are made and traded yet in addition settlement practices, record-keeping, and sales supervision.

The exam's inquiries cover six points, which might be broken down into subtopics (see sample questions listed below). A full rundown can be found in the MSRB's Municipal Principal Qualification Examination (Series 53) Content Outline:

1. Federal Regulations (four inquiries): Understanding the regulatory interaction and rulemaking agencies, as well as the practices that administer the municipal securities business. Additionally, information connected with the Securities Exchange Act of 1934, antifraud provisions, SEC Rules, the Dodd-Frank Wall Street Financial Reform and Consumer Protection Act, the Securities Investor Protection Corporation (SIPC) and its purpose.
2. General Supervision (23 inquiries): Responsibilities and rules overseeing a municipal securities principal, industry terms, registration, qualification and continuing education requirements, implementation and monitoring of compliance systems and procedures and disclosures.
3. Sales Supervision (25 inquiries): Supervisory tasks, as well as rules, record keeping and endorsements expected to open and keep up with client accounts. Practical information on suitable investments, as well as what is an inappropriate or restricted sales activity. Rules and procedures for taking care of customer protests.
4. Origination and Syndication (23 inquiries): Understanding a dealer's obligations while filling in as an advisor to an issuer, characterizing the advisory relationship, recording it, as well as understanding required disclosures and obligations associated with official statements, both as a financial advisor and an underwriter. Likewise, order types and their disclosures, administration rules connected with the job of lead manager of a syndicate.
5. Trading (10 inquiries): Demonstrate a comprehension of municipal security citing rules, record-keeping responsibilities regarding principal and agency transactions, procedures and time periods for reporting transactions, understanding liabilities connected with CUSIP numbers in secondary market trading, and understanding the disallowance against reporting fictitious trade reports.
6. Operations (15 inquiries): Understanding what is expected to confirm transactions, the settlement interaction for trades and the mechanics of delivery of securities and the requirements for taking care of trade or settlement issues. Additionally, understanding what records should be kept up with, as well as time spans for keeping up with them.

Series 53 Sample Questions

These sample questions, given by the MSRB, are like the organization and content found in the Series 53 test however are not actual test questions. The responses are given below.

1. What action by an associated person of a dealer could make the dealer be restricted from taking part in municipal securities business with that issuer?

2. A non-MFP executive officer makes a contribution to an official of the issuer.

3. A MFP contributes $100 to the campaign of an issuer official in a state where he doesn't live.

4. A MFP contributes $250 to the campaign of an issuer official in the city where he lives.

5. An associated person whose municipal securities' activities are limited to sales to customers contributes $300 to an issuer official.

6. Reclamation of municipal securities is permitted for one business day following delivery for which of the accompanying reasons?

7. In the event that there is a conflict regarding the purchase price

8. In the event that a coupon is discovered to be disfigured

9. On the off chance that the CUSIP number isn't engraved on the testaments

10. Assuming that the securities go into default

11. Which two of the accompanying statements accurately portray a manager's obligations with respect to the disclosure of syndicate expenses to account individuals?

• 1. An itemized statement of anticipated expenses must be given prior to the formation of the account.
• 2. The amount of the management fee must be uncovered to the account individuals prior to the submission of a bid.
• 3. The last account statement must be outfitted not later than 60 days from the date of delivery of all securities by the syndicate.
• 4. Each expense, no matter what the amount, must be listed in the last account statement.

1. I and III

2. I and IV

3. II and III

4. II and IV

5. Senior managers of municipal securities syndicates must keep up with, for each syndicate account, books and records that show all of the accompanying information EXCEPT:

6. The terms and conditions overseeing the operation of the syndicate account

7. A reconciliation of the profits and expenses of the syndicate

8. All assignments of those securities to syndicate individuals and the price at which sold

9. The names and addresses of every customer purchasing securities from a syndicate part

Replies: 1. (2); 2. (2); 3. (3); 4. (4)

Features

• The Series 53 exam is a licensing exam that concedes the individuals who pass the ability to oversee municipal bond sales and trading.
• The Series 53 exam must be endeavored in the event that the candidate has previously breezed through the Series 52 exam (permitting them to be a municipal securities representative).
• The Series 53 exam comprises of 100 different decision questions covering six substantive subject areas.