FINRA Highlights Regulatory and Sales Practices of Municipal Securities in Continuing Education Podcast

FINRA released the second podcast in a four-part continuing education series by the Securities Industry Regulatory Council. It highlights regulatory and sales practices for firms to consider in their firm element training plans. This episode focuses on municipal securities.

The following new and updated advisory items related to municipal securities were covered:

• The MSRB filed a content outline for a new Series 50 examination for municipal advisor representatives, which will be available in 2016.
• The MSRB amended Rule G-14 ("Transaction Reporting") and changed the real-time transaction reporting information system and subscription service. The changes enhance post trade price transparency information and become effective May 23, 2016.
• The MSRB published a market advisory about bank loan voluntary disclosure that reminds firms about the importance of informing the market of a bank loan and its terms.
• FINRA published guidance about firm short positions and "fails-to-receive" in municipal securities. As detailed in Regulatory Notice 15-27, firms must include in their written supervisory procedures a process for detecting, resolving and preventing consequences of firm short positions and "fails-to-receive" in municipal securities.
• The MSRB changed the effective date of its Best Execution of Transactions in Municipal Securities Rule. The new effective date will be no later than April 29, 2016.