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Rule Change Updates

New MSRB Customer Complaint and Investor Brochure Rules

The MSRB recently amended its customer complaint and related investor brochure rules (Rule G-10).  Registered municipal dealers, broker-dealers, and municipal advisors (“municipal firms”) are now required to keep an electronic log of all written complaints from customers or municipal advisory clients and what action, if any, has been taken by the dealer in connection with those complaints. The record must be retained for six years from the date of the resolution of the complaint.

The record must include:

  • the complainant’s name, address, and account number;
  • the date the complaint was received;
  • the name of any other associated person identified in the complaint;
  • a description of the nature of the complaint; and the disposition of the complaint.

New Brochure Rule

To educate customers on the complaint filing process, municipal firms must ensure that all retail and institutional customers receive educational material and information about filing a complaint on a regular basis. Specifically, a firm must provide to each customer, in writing, no less than once each calendar year:

  • a statement that it is registered with the MSRB and the SEC,
  • the MSRB’s website address, and
  • a statement about the availability of a brochure on the MSRB website that describes the investor protections available under MSRB rules and how to file a complaint with an appropriate regulatory authority.

These requirements also apply to firms that offer and sell only municipal fund securities.

Effect on Licensing Exams

These concepts are currently testable on Series 7, Series 50, Series 52, Series 53 and Series 24 regulatory exams.

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Marcia Larson is Vice President, Faculty, at Knopman Marks Financial Training, New York, NY. She has extensive experience in financial licensing and regulatory training, having authored, developed and presented courseware for numerous securities and insurance exam preparation and continuing education and compliance programs. Before joining Knopman Marks, Marcia was Director of Annuity Products and Business Development at CUNA Mutual Group, where she developed and marketed industry-leading annuity products and retirement solutions and implemented distribution relationships. She was previously VP, Securities Products for Kaplan Financial, managing securities training products and subsequently, international training and businesses development. Marcia has trained thousands of financial industry exam candidates throughout their careers, and also college students as an adjunct professor. Marcia was a summa cum laude graduate of Wartburg College with degrees in Business Administration and Piano Performance. Marcia also holds the designations of Chartered Financial Consultant® (ChFC®), Chartered Life Underwriter (CLU®), Certified Employee Benefit Specialist (CEBS), and Fellow Life Management Institute™ (FLMI®). She currently teaches the SIE, Series 6, 7, 24, 50, 52, 63, 65, and 66 exams.