Document ID: SEC-2015-1350-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Municipal Securities Rulemaking Board
Posted Date: 2015-08-13T04:00Z

[Federal Register Volume 80, Number 156 (Thursday, August 13, 2015)]
[Notices]
[Pages 48572-48577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19874]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75646; File No. SR-MSRB-2015-07]

Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Notice of Filing of a Proposed Rule Change Consisting of 
Revisions to the Content Outlines for the Municipal Fund Securities 
Limited Principal Qualification Examination, Municipal Securities 
Representative Qualification Examination and Municipal Securities 
Principal Qualification Examination and Revisions to the Selection 
Specifications for the Municipal Securities Principal Qualification 
Examination

August 7, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on July 31, 2015, the Municipal Securities Rulemaking Board (the 
``MSRB'' or ``Board'') filed with the Securities and Exchange 
Commission (the ``SEC'' or ``Commission'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the MSRB. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The MSRB filed with the Commission proposed revisions to the 
content outlines for the Municipal Fund Securities Limited Principal 
Qualification Examination (Series 51), Municipal Securities 
Representative Qualification Examination (Series 52) and Municipal 
Securities Principal Qualification Examination (Series 53). As a result 
of changes to MSRB rules, revisions to the content outlines are 
necessary to more accurately indicate the current rule requirements and 
rule citations. Additionally, the MSRB is proposing revisions to the 
selection specifications for the Series 53 qualification examination 
(collectively, the ``proposed rule change'').\3\ The MSRB is not 
proposing any textual changes to its rules.
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    \3\ The MSRB is also proposing changes to the question banks for 
the Series 51, Series 52 and Series 53 examinations, but based upon 
instructions from the Commission staff, the MSRB is submitting SR-
MSRB-2015-07 for immediate effectiveness pursuant to Section 
19(b)(3)(A)(i) of the Act and Rule 19b-4(f)(6) thereunder, and is 
not filing the question banks for Commission review. See letter to 
Diane G. Klinke, General Counsel, MSRB, from Belinda Blaine, 
Associate Director, Division of Market Regulation, SEC, dated July 
24, 2000, attached as Exhibit 3d. The question banks are available 
for Commission review. The selection specifications for the Series 
53 examination, Exhibit 3e, have been omitted and filed separately 
with the Commission for confidential treatment pursuant to Rule 24b-
2 of the Securities Exchange Act.
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    The text of the proposed rule change is available on the MSRB's Web 
site at www.msrb.org/Rules-and-Interpretations/SEC-Filings/2015-Filings.aspx, at the MSRB's principal office, and at the Commission's 
Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the MSRB included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The MSRB has prepared summaries, set forth in Sections 
A, B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Section 15B(b)(2)(A) of the Act \4\ authorizes the MSRB to 
prescribe for municipal securities brokers or municipal securities 
dealers and their associated persons standards of training, experience, 
competence, and such other qualifications as the Board finds necessary 
or appropriate in the public

[[Page 48573]]

interest or for the protection of investors and municipal entities or 
obligated persons. The MSRB has developed examinations that are 
designed to establish that persons associated with brokers, dealers and 
municipal securities dealers that effect transactions in municipal 
securities and municipal advisors who engage in municipal advisory 
activities have attained specified levels of competence and knowledge. 
The content outline for each examination serves as a guide to the 
subject matter tested on the examination and provides learning 
objectives associated with each subject matter to assist candidates in 
preparing for the examination. Each content outline also provides 
sample questions similar to the type of questions that may be found on 
the examination. The arrangement of the subject matter in the content 
outline reflects the various job functions performed within a broker, 
dealer or municipal securities dealer. The MSRB periodically reviews 
the content outline for each examination to determine whether revisions 
are necessary or appropriate in view of changes pertaining to the 
subject matter covered by the examination. Below is a summary of the 
proposed revisions to the Series 51, Series 52 and Series 53 content 
outlines.
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    \4\ 15 U.S.C. 78o-4(b)(2)(A).
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    The selection specifications for the Series 53 examination, which 
the MSRB has submitted under separate cover with a request for 
confidential treatment to the Commission's
    Secretary pursuant to Rule 24b-2 under the Act,\5\ describe 
additional confidential information regarding the Series 53 
examination.
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    \5\ 17 CFR 240.24b-2.
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MUNICIPAL FUND SECURITIES LIMITED PRINCIPAL QUALIFICATION EXAMINATION--
SERIES 51
    The Municipal Fund Securities Limited Principal Qualification 
Examination is designed to determine whether an individual meets the 
MSRB's qualification standards for municipal fund securities limited 
principals applicable to the activities described in Rule G-
3(b)(iv).\6\ To do this, the examination measures a candidate's 
knowledge of MSRB rules, rule interpretations and federal statutory 
provisions applicable to the activities listed above. It also measures 
the candidate's ability to apply these rules, interpretations and 
federal statutory provisions to given fact situations in the context of 
municipal fund securities activities. In addition to passing the Series 
51 examination, to qualify as a municipal fund securities limited 
principal, a candidate must also have previously or concurrently 
qualified as a general securities principal or investment company/
variable contracts limited principal. Candidates are allowed one and 
one-half hours to complete the Series 51 examination consisting of 60 
multiple-choice questions.
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    \6\ MSRB Rule G-3(b)(iv) states that the municipal fund 
securities limited principal has responsibility to oversee the 
municipal securities activities of a securities firm or bank dealer 
solely as such activities relate to transactions in municipal fund 
securities. In this capacity, the municipal fund securities limited 
principal manages, directs or supervises one or more of the 
following activities relating to municipal fund securities as 
described in Rule G-3(b)(i)(A)-(G):
    (A) Underwriting, trading or sales of municipal securities;
    (B) financial advisory or consultant services for issuers in 
connection with the issuance of municipal securities;
    (C) processing, clearance, and, in the case of brokers, dealers 
and municipal securities dealers other than bank dealers, 
safekeeping of municipal securities;
    (D) research or investment advice with respect to municipal 
securities;
    (E) any other activities which involve communication, directly 
or indirectly, with public investors in municipal securities;
    (F) maintenance of records with respect to the activities 
described in subparagraphs (A) through (E); or
    (G) training of municipal securities principals or municipal 
securities representatives;
    provided, however, that the activities enumerated in 
subparagraphs (D) and (E) above shall be limited to such activities 
as they relate to the activities enumerated in subparagraphs (A) or 
(B) above.
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    As a result of recent changes to MSRB rules, revisions to the 
Series 51 content outline are necessary to indicate the current rule 
requirements and rule citations. A summary of the changes to the 
content outline for the Series 51 examination, detailed by major topic 
headings, is provided below:
Introduction
     Footnote 2 will be changed to footnote 3.
     The rule citation and quotation in footnote 3 regarding 
the ``Confidentiality of Qualification Examinations'' is being revised 
from ``Rule G-3(e)'' to ``Rule G-3(f)'' to conform to amendments to 
Rule G-3.
Part Three: General Supervision
Qualification and Registration
     The sub-topic ``Registration with the MSRB and payment of 
initial fee and annual fee A-12; A-14'' is being revised to 
``Registration requirements A-12(a)'' to reflect that the relevant 
provision (which is now included in Rule A-12) is no longer included in 
Rule A-14, as amended.
     The rule citation and sub-topic ``Notification to the MSRB 
of change in status, name or address A-15'' is being revised to ``Form 
A-12 updates and withdrawal A-12(j)'' to conform to recent amendments 
of Rule A-12.
     The rule citation and sub-topic ``Requirement to submit 
email contact to MSRB G-40'' is being revised to ``Designated contacts 
A-12(f)'' to conform to recent amendments of Rule A-12.
Associated Persons
     The sub-topic ``financial and operations principals G-
3(d)(i) and (ii)'' is being rescinded to reflect that this registration 
category is no longer referenced in Rule G-3.
     The sub-topic ``municipal advisor representatives G-3(d)'' 
and ``municipal advisor principals G-3(e)'' are being added to reflect 
the new registration category as referenced in Rule G-3.
     The sub-topic ``Apprenticeship requirement G-3(a)(iii)'' 
is being rescinded to reflect that, as amended, Rule G-3 no longer has 
this requirement.
     The sub-topic ``Restrictions on apprentices G-
3(a)(iii)(A)'' is being rescinded to reflect that, as amended, Rule G-3 
no longer has this requirement.
Supervisory Responsibilities
     The rule citation for sub-topic ``1. Responsible for 
municipal securities business and activities of associated persons'' is 
being revised from ``G-27(b)(i)'' to ``G-27(b)(ii)'' to reflect the 
reorganization of Rule G-27, as amended.
Part Four: Fair Practice and Conflicts of Interest
Conduct of Business
     The rule citation for sub-topic ``Prices and Commissions'' 
is being revised from ``G-30(b); G-18'' to ``G-30(b)'' to reflect that 
the relevant requirements are included in Rule G-30, as amended.
     The rule citation for sub-topic ``Advertising, 1. 
Definition'' is being revised from ``G-21(a)'' to ``G-21(a)(i)'' to 
reflect the reorganization of Rule G-21, as amended.
Part Five: Sales Supervision
Opening Customer Accounts
     The rule citation for sub-topic ``Requirement to obtain 
customer account information'' is being revised from ``G-19(a)'' to 
``G-19'' to reflect the reorganization of Rule G-19, as amended.
     The sub-topic ``Transactions with employees and partners 
of other dealers G-28'' is being revised to ``Transactions

[[Page 48574]]

with employees and partners of other municipal securities professionals 
G-28'' to reflect the reorganization of Rule G-28, as amended.
Suitability
     The rule citation for sub-topic ``Knowledge of customer'' 
is being revised from ``G-19(b)'' to ``G-19 [Supp. .04 and .06]'' to 
reflect that the relevant requirements are included in paragraphs .04 
and .06 of the Supplementary Material of Rule G-19, as amended.
     The rule citation for sub-topic ``Suitability of 
recommendations'' is being revised from ``G-19(c)'' to ``G-19 [Supp. 
.05]'' to reflect that the relevant requirements are included in 
paragraph .05 of the Supplementary Material of Rule G-19, as amended.
Improper Activities
     The title of topic ``Improper Activities'' is being 
revised to ``Improper Use of Customer Assets.''
     The sub-topic and rule citation ``Churning G-19(e)'' are 
being revised to ``Quantitative suitability G-19 [Supp. .05(c)]'' to 
reflect that the relevant requirements are included in paragraph .05 of 
the Supplementary Material of Rule G-19, as amended.
Part Six: Underwriting and Disclosure Obligations
Disclosures to Customers
     The sub-topic and related rule citation ``Material 
disclosures at time of trade G-17'' are being revised to ``Time of 
trade disclosure G-47'' to reflect that the requirements are included 
in new Rule G-47.
Part Seven: Operations
Confirmation of Transactions
     The rule citation for sub-topic ``Periodic statements'' is 
being revised from ``G-15(a)(viii)'' to ``G-15(a)(viii)(B)(1)'' to 
reflect the reorganization of Rule G-15, as amended.
Sample Questions
     Sample question number 2 is being removed from the outline 
because the topic (apprenticeship) is no longer tested on the 
examination.
MUNICIPAL SECURITIES REPRESENTATIVE EXAMINATION--SERIES 52
    The Municipal Securities Representative Qualification Examination 
is designed to determine whether an individual meets the MSRB's 
qualification standards for municipal securities representatives by 
measuring a candidate's knowledge of MSRB rules, rule interpretations 
and federal statutory provisions applicable to the activities listed in 
Rule G-3(a)(i).\7\ The Series 52 examination also measures a 
candidate's ability to apply the rules and interpretations to given 
fact situations in the context of a representative's municipal 
securities activities. Candidates are allowed three and one-half hours 
to complete the examination consisting of 115 multiple-choice 
questions.
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    \7\ MSRB Rule G-3(a)(i) states:
     (A) The term ``municipal securities representative'' means a 
natural person associated with a broker, dealer or municipal 
securities dealer, other than a person whose functions are solely 
clerical or ministerial, whose activities include one or more of the 
following:
    (1) underwriting, trading or sales of municipal securities;
    (2) financial advisory or consultant services for issuers in 
connection with the issuance of municipal securities;
    (3) research or investment advice with respect to municipal 
securities; or
    (4) any other activities which involve communication, directly 
or indirectly, with public investors in municipal securities;
    provided, however, that the activities enumerated in 
subparagraphs (3) and (4) above shall be limited to such activities 
as they relate to the activities enumerated in subparagraphs (1) and 
(2) above.
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    As a result of recent changes to MSRB rules, revisions to the 
Series 52 content outline are necessary to indicate the current rule 
requirements and rule citations. A summary of the changes to the 
content outline for the Series 52 examination, detailed by major topic 
headings, is provided below:
Introduction
     The rule citation and quote in the ``Confidentiality'' 
section is being revised from ``Rule G-3(e)'' to ``Rule G-3(f)'' and 
added as footnote 2, to conform to amendments to Rule G-3.
Part Four: Federal Legal Considerations
III. MSRB Rules
     The rule citation ``Professional Qualifications (G-2 
through G-7)'' is being revised to ``Standards of Professional 
Qualification and Professional Qualification Requirements (G-2 through 
G-3)'' to conform to the current titles of the Rules, as amended.
     The rule citation ``Recordkeeping (G-8)'' is being revised 
to ``Books and Records to be Made by Brokers, Dealers, Municipal 
Securities Dealers, and Municipal Advisors (G-8)'' to conform to the 
current title of Rule G-8, as amended.
     The rule citation ``Preservation of Records (G-9)'' is 
being added, to reflect the relevant requirements included in Rule G-9.
     The rule citation ``Investor Brochure (G-10)'' is being 
revised to ``Delivery of Investor Brochure (G-10)'' to conform to the 
current title of Rule G-10.
     The rule citation ``New Issue Syndicate Practices (G-11)'' 
is being revised to ``Primary Offering Practices (G-11)'' to conform to 
the current title of Rule G-11.
     The rule citation ``Conduct of Municipal Securities 
Activities (G-17)'' is being revised to ``Conduct of Municipal 
Securities and Municipal Advisory Activities (G-17)'' to conform to the 
current title of Rule G-17, as amended.
     The rule citation ``Execution of Transactions (G-18)'' is 
being revised to ``Best Execution (G-18)'' to conform to the current 
title of Rule G-18, as amended.
     The rule citation ``Suitability of Recommendations and 
Transactions; Discretionary Accounts (G-19)'' is being revised to 
``Suitability of Recommendations and Transactions (G-19)'' to conform 
to the current title of Rule G-19, as amended.
     The rule citation ``Disclosure of Control Relationships 
(G-22)'' is being revised to ``Control Relationships (G-22)'' to 
conform to the current title of Rule G-22, as amended.
     The rule citation ``Transactions with Employees of Other 
Municipal Securities Professionals (G-28)'' is being revised to 
``Transactions with Employees and Partners of Other Municipal 
Securities Professionals (G-28)'' to conform to the current title of 
Rule G-28, as amended.
     The rule citation ``Calculations (G-33)'' is being added 
to reflect the requirements included in Rule G-33.
     The rule citation ``Broker's Broker (G-43)'' is being 
added to reflect the requirements included in Rule G-43.
     The rule citation ``Time of Trade Disclosure (G-47)'' is 
being added to reflect the requirements included in Rule G-47.
     The rule citation ``Transactions with Sophisticated 
Municipal Market Professionals (G-48)'' is being added to reflect the 
relevant requirements included in Rule G-48, as amended.
MUNICIPAL SECURITIES PRINCIPAL EXAMINATION--SERIES 53
    The Municipal Securities Principal Qualification Examination 
(Series 53) is designed to determine whether an individual meets the 
Board's qualification standards for municipal securities principals. 
The Series 53 examination measures a candidate's knowledge of Board 
rules, rule interpretations and federal statutory provisions applicable 
to municipal securities activities. It also measures an

[[Page 48575]]

individual's ability to apply these rules and interpretations to given 
fact situations. Candidates are allowed three hours to complete the 
examination consisting of 100 multiple-choice questions.\8\
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    \8\ MSRB Rule G-3(b)(i) states:
    (i) Definition. The term ``municipal securities principal'' 
means a natural person (other than a municipal securities sales 
principal), associated with a broker, dealer or municipal securities 
dealer who is directly engaged in the management, direction or 
supervision of one or more of the following activities:
    (A) underwriting, trading or sales of municipal securities;
    (B) financial advisory or consultant services for issuers in 
connection with the issuance of municipal securities;
    (C) processing, clearance, and, in the case of brokers, dealers 
and municipal securities dealers other than bank dealers, 
safekeeping of municipal securities;
    (D) research or investment advice with respect to municipal 
securities;
    (E) any other activities which involve communication, directly 
or indirectly, with public investors in municipal securities;
    (F) maintenance of records with respect to the activities 
described in subparagraphs (A) through (E); or
    (G) training of municipal securities principals or municipal 
securities representatives;
     provided, however, that the activities enumerated in 
subparagraphs (D) and (E) above shall be limited to such activities 
as they relate to the activities enumerated in subparagraphs (A) or 
(B) above.
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    The selection specifications for the Series 53 examination, which 
the MSRB has submitted under separate cover with a request for 
confidential treatment to the Commission's Secretary pursuant to Rule 
24b-2 under the Act,\9\ describe additional confidential information 
regarding the Series 53 examination. Due to the changes in the 
selection specifications the weighting for 5 of the 6 topic areas of 
the Series 53 content outline have changed. The first topic area, 
Federal Regulation, remains the same at 4% of the exam. The second 
topic area, General Supervision, is 23% of the exam. The third topic 
area, Sales Supervision, is 25% of the exam. The fourth topic area, 
Origination and Syndication, is 23% of the exam. The fifth topic area, 
Trading, is 10% of the exam. The sixth topic area, Operations, is 15% 
of the exam.
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    \9\ 17 CFR 240.24b-2.
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    As a result of recent changes to MSRB rules, revisions to the 
Series 53 content outline are necessary to indicate the current rule 
requirements and rule citations. A summary of the changes to the 
content outline for the Series 53 examination, detailed by major topic 
headings, is provided below:
Introduction
     The rule citation and quotation in footnote 2 regarding 
``Confidentiality'' is being revised from ``Rule G-3(e)'' to ``Rule G-
3(f)'' to conform to amendments to Rule G-3.
Part One: Federal Regulations
Rules of the Securities and Exchange Commission
     The rule citation ``Dodd-Frank Wall Street Financial 
Reform and Consumer Protection Act'' is being added to reflect the 
current status of federal securities law.
Part Two: General Supervision
Definitional Rules
     The rule citation ``Associated person D-11'' is being 
added to reflect the requirements included in Rule D-11, as amended.
     The rule citation ``Sophisticated Municipal Market 
Professional (SMMP) D-15'' is being added to reflect the requirements 
included in Rule D-15, as amended.
Qualification and Registration
     The rule citation ``Registration with the MSRB and payment 
of initial fee A-12'' is being revised to ``Registration A-12'' to 
conform to amendments to Rule A-12.
     The topic ``MSRB annual fee A-14'' is being removed to 
reflect that the relevant provision of Rule A-14 is now included in 
Rule A-12, as amended.
     The rule citation ``Assessments for Municipal Advisor 
Professionals A-11'' is being added to reflect the new requirement in 
Rule A-11.
     The topic ``Electronic mail contacts G-40'' is being 
removed because Rule G-40 has been rescinded.
     The rule citation ``Notification to the MSRB of change in 
status, name or address A-15'' is being removed to reflect that the 
relevant provision of Rule A-15 is now included in Rule A-12, as 
amended.
     The rule citation ``Limited representative--investment 
company and variable contracts products G-3(a)(i)(C)'' is being added 
to reflect the requirements included in Rule G-3, as amended.
     The rule citation ``Municipal advisor representative G-
3(d)'' is being added to reflect the requirements included in Rule G-3, 
as amended.
     The rule citation ``Municipal advisor principal G-3(e)'' 
is being added to reflect the requirements included in Rule G-3, as 
amended.
     The topic ``financial and operations principals G-3d(i) 
and (ii)'' is being removed to reflect the rescission of the 
requirement in Rule G-3d(i) and (ii), as amended.
     The rule citation ``Continuing education requirements G-
3(h)'' is being revised to ``Continuing education requirements G-3(i)'' 
to reflect the reorganization of Rule G-3, as amended.
     The rule citation ``Confidentiality of qualification 
examinations G-3(e)'' is being revised to ``Confidentiality of 
qualification examinations G-3(f)'' to reflect the reorganization of 
Rule G-3, as amended.
     The topic ``Apprenticeship requirement G-3(a)(iii)'' is 
being removed to reflect the rescission of the requirement.
Supervisory Responsibilities
     The rule citation ``Responsibility for municipal 
securities business and activities of associated persons G-27(b)(i)'' 
is being revised to ``Responsibility for municipal securities business 
and activities of associated persons G-27(b)'' to reflect the 
reorganization of Rule G-27.
     The topic and rule citation ``Internal inspections G-
27(d)'' is being added to reflect the requirements included in Rule G-
27.
     The topic area ``Definition G-22(a)'' is being revised to 
``Definition of control relationship G-22(a)'' to provide clarity to 
the title of the topic area.
     The topic area ``Definitions G-20(e)'' is being revised to 
``Definitions of `non-cash compensation', `cash compensation', 
`offeror' and `primary offering' G-20(e)'' to provide clarity to the 
title of the topic area.
     The topic area ``Prohibition from engaging in municipal 
securities business'' is being revised to ``Political contributions and 
prohibition from engaging in municipal securities business'' to provide 
clarity to the title of the topic area.
     The topic area ``Definitions G-37(g)'' is being revised to 
``Definitions including `municipal finance professional,' `municipal 
securities businesses' and `issuer official' G-37(g)'' to provide 
clarity to the title of the topic area.
     The topic area ``Period of prohibition G-37(b)'' is being 
revised to ``Ban on municipal securities business; de minimis exemption 
G-37(b)'' to conform to the title of Rule G-37.
     The topic area and rule citation ``Prohibition on 
Soliciting and Coordinating Contributions G-37(c)'' is being added to 
reflect the requirements included in Rule G-37.
     The topic area ``Definitions G-21(a)'' is being revised to 
``Definitions; General standard for advertisements G-21(a)(iii)'' to 
provide clarity to the title of the topic area.

[[Page 48576]]

Part Three: Sales Supervision
Opening Customer Accounts
     The rule citation ``Requirement to obtain customer account 
information G-19(a)'' is being revised to ``Requirement to obtain 
customer account information G-19'' to reflect the reorganization of 
Rule G-19, as amended.
     The topic area ``Transactions with employees and partners 
of other dealers'' is being revised to ``Transactions with employees 
and partners of other municipal securities professionals'' to provide 
clarity to the title of the topic area.
     The topic area ``Exemption for municipal fund securities 
G-28(c)'' is being added to reflect the relevant requirements included 
in Rule G-28.
Communications With Customers
     The topic area and rule citation ``Restrictions on 
apprentices G-3(a)(iii)(A)'' is being removed to reflect the rescission 
of the requirement in Rule G-3, as amended.
     The topic area and rule citation ``Tape recording of 
conversations G-27(c)(ii)'' is being added to reflect the requirements 
included in Rule G-27.
Suitability
     The rule citation for topic area ``Knowledge of customer 
G-19(b)'' is being revised to ``Knowledge of customer G-19 [Supp. 
.04]'' to reflect that the relevant requirements are included in 
paragraph .04 of the Supplementary Material of Rule G-19, as amended.
     The rule citation for topic area ``Suitability of 
recommendations G-19(c)'' is being revised to ``Suitability of 
recommendations and transactions G-19'' to reflect that the relevant 
requirements are included in Rule G-19, as amended.
     The topic area and rule citation ``Time of trade 
disclosure G-47'' is being added to reflect the requirements included 
in Rule G-47.
     The topic area and rule citation ``Sophisticated Municipal 
Market Professionals (SMMP) G-48'' is being added to reflect the 
requirements included in Rule G-48, as amended.
     The section header ``Improper Activities'' is being 
revised to ``Supervisory Concerns'' to provide clarity to the title of 
the section.
     The topic area and rule citation ``Churning G-19(e)'' is 
being revised to ``Quantitative Suitability G-19 [Supp. .05]'' to 
reflect that the relevant requirements are included in paragraph .05 of 
the Supplementary Material of Rule G-19, as amended.
     The topic area ``Prohibition against soliciting and 
coordinating political contributions G-37(c) and (d)'' is being revised 
to ``Prohibition against soliciting and coordinating political 
contributions; and circumvention of rule, G-37(c) and (d)'' to reflect 
that the relevant requirements are included in Rule G-37.
Discretionary Accounts
     The topic area and rule citation ``Suitability G-19(d)'' 
is being moved to the suitability section in Part three of the content 
outline.
     The topic area and rule citation ``Written supervisory 
procedures G-27(c)(i)'' is being revised to ``Approval of transactions 
G-27(c)(i)(G)(2)'' to reflect the reorganization of Rule G-27.
Customer Complaints
     The rule citation for topic area ``Review by a principal 
G-27(c)(ii)'' is being revised to ``Review by a principal G-
27(c)(i)(B)'' to reflect the reorganization of Rule G-27.
Part Four: Orientation and Syndication
New Issue Syndicate Practices
     The topic area and rule citation ``Retail order period and 
required disclosures G-11(k)'' are being added to reflect the 
requirements included in Rule G-11.
     The topic area ``Definitions A-13(f)'' is being revised to 
``Definition of primary offering A-13(f)'' to provide clarity to the 
title of the topic area.
Part Five: Trading
Execution of Transactions
     The topic area ``Transactions as agent G-18'' is being 
revised to ``Best execution G-18'' to reflect the requirements included 
in Rule G-18.
     The topic area ``Prices and Commissions'' is being added 
to reflect the requirements included in Rule G-30.
     The topic area and rule citation ``Principal transactions 
G-30(a)'' is being moved from section two regarding general supervision 
to section five regarding trading.
     The topic area and rule citation ``Agency transactions G-
30(b)'' is being moved from section two regarding general supervision 
to section five regarding trading.
     The topic area and rule citation ``Time of trade 
disclosure G-47'' is being added to reflect the requirements included 
in Rule G-47, as amended.
Reports of Sales or Purchases
     The topic area ``Definitions G-14, RTRS Procedures, Sect. 
(d)'' is being revised to ``Definitions relating to reporting 
requirements for specific types of transactions'' to provide clarity to 
the title of the topic area.
2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with 
the provisions of Section 15B(b)(2)(A) of the Act,\10\ which authorizes 
the MSRB to prescribe for municipal securities brokers or municipal 
securities dealers and their associated persons standards of training, 
experience, competence, and such other qualifications as the Board 
finds necessary or appropriate in the public interest or for the 
protection of investors and municipal entities or obligated persons. 
Section 15B(b)(2)(A) of the Act \11\ also provides that the Board may 
appropriately classify municipal securities brokers, municipal 
securities dealers, and municipal advisors and persons associated with 
municipal securities brokers, municipal securities dealers and 
municipal advisors and require persons in any such class to pass tests 
prescribed by the Board.
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    \10\ 15 U.S.C. 78o-4(b)(2)(A).
    \11\ Id.
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    The MSRB believes that the proposed revisions to the content 
outline for the Series 51, Series 52, and Series 53 examinations and 
changes to the selection specifications for the Series 53 examination 
are consistent with the provisions of Section 15B(b)(2)(A) of the Act 
\12\ in that the revisions will ensure that certain key concepts and 
rules are tested on each of the examinations in order to test the 
competency of individuals seeking to qualify as a municipal fund 
securities limited principal, municipal securities representative and 
municipal securities principal with respect to their knowledge of MSRB 
rules and the municipal securities market.
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    \12\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The MSRB does not believe that the proposed rule change will result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The updated Series 51, Series 
52, and Series 53 content outlines align with the functions and 
associated tasks currently performed by municipal fund securities 
limited principals, municipal securities representatives, and municipal 
securities principals and tests knowledge of the most current laws, 
rules, and regulations and skills relevant to those functions and 
associated tasks. As such, the proposed rule change would make the 
examinations more efficient and effective.

[[Page 48577]]

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\ The examination content outlines for the Series 
51, Series 52 and Series 53 examinations and the Series 52 selection 
specifications will become operative on August 31, 2015.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-MSRB-2015-07 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549.

All submissions should refer to File Number SR-MSRB-2015-07. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the MSRB. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-MSRB-2015-07 and should be 
submitted on or before September 3, 2015.

    For the Commission, pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-19874 Filed 8-12-15; 8:45 am]
BILLING CODE 8011-01-P