MSRB Rules Practice Test

Under MSRB rules, which items must be approved before they occur?

I only I and IV II and III I, II, III, IV

Correct Answer:

I and IV

Explanation:

MSRB rules require that materials used to communicate with the public about municipal securities be reviewed and approved by a supervisor before they’re used. This preapproval helps ensure the content is accurate, not misleading, and includes any required disclosures. Advertising and sales literature are classic examples of items that must be approved beforehand because they are public communications that can impact investor decisions. The other items in the list aren’t public communications or are already governed by other review processes, so they don’t require preapproval prior to occurrence. So, the correct choice reflects that the items involving public-facing communications must be approved before they occur.

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