WASHINGTON - The Securities and Exchange Commission has approved a Municipal Securities Rulemaking Board proposal to require dealers to train certain individuals annually on municipal securities issues.
The amendments to MSRB Rule G-3 on professional qualification requirements take effect Jan. 1.
It will mark the first time dealers will have to provide some personnel with muni-specific training, rather than allowing firms to base their continuing education curriculum on the firm's overall needs.
The amendments permit dealers to determine which of their registered representatives and principals regularly engage in or supervise municipal securities activities and should receive the muni training. The amendments also allow firms to determine the extent of the training.
"The MSRB's revised continuing education requirements for dealers are designed to prompt firms to focus on the particular training needs of staff responsible for understanding municipal securities products and complying with all applicable requirements," said MSRB executive director Lynnette Kelly. "Effective training facilitates compliance with MSRB rules and furthers the MSRB's mission to protect investors and issuers."
Late last year the board proposed a minimum of one hour of training focused on municipal securities for professionals whose jobs primarily focus on munis. Following public comment, the MSRB removed the specified one-hour minimum amount of training and applied the muni education requirement only to personnel registered with the board.
The MSRB will host an educational webinar about the rule amendments on Dec. 4.
