A customer's municipal bonds lose a third of their market value while held at a SIPC member firm that stays in business. Does SIPC cover the loss?Answer: No. SIPC does not protect against a decline in value. Source: Securities Investor Protection Corporation, What SIPC Protects. Outline: MSRB Series 53 Content Outline (August 2024), Part 1, 1.3.2.
How often must a municipal securities dealer that is a bank be examined for compliance with MSRB rules?Answer: At least once each two calendar years. Source: MSRB Rule G-16. Outline: MSRB Series 53 Content Outline (August 2024), Part 1, 1.1.2.2.
General supervision 11
A bank dealer has 14 full-time people performing its municipal securities dealer activities. How many municipal securities principals must it have at a minimum?Answer: Two. Source: MSRB Rule G-3(b)(iii). Outline: MSRB Series 53 Content Outline (August 2024), Part 2, 2.2.1.6.
A corporation that is not a bank, insurer or adviser can be a sophisticated municipal market professional under Rule D-15 only if its total assets are at least what?Answer: $50 million. Source: MSRB Rule D-15. Outline: MSRB Series 53 Content Outline (August 2024), Part 2, 2.1.
Show all 50 questions (46 more)
General supervision, continued
A dealer wants to pay an outside consultant, who is not an affiliated person, to solicit municipal securities business for it. What does MSRB Rule G-38 say?Answer: The payment is prohibited. Source: MSRB Rule G-38(a). Outline: MSRB Series 53 Content Outline (August 2024), Part 2, 2.4.5.2.
An underwriter takes issuer officials to dinner during a financing. May it be reimbursed for the dinner from the bond proceeds?Answer: No. Entertainment costs may not come from offering proceeds. Source: MSRB Rule G-20(e). Outline: MSRB Series 53 Content Outline (August 2024), Part 2, 2.4.3.2.
By when must a registered person complete the Regulatory Element of continuing education under MSRB Rule G-3(i)?Answer: Each year, by December 31. Source: MSRB Rule G-3(i)(i)(A). Outline: MSRB Series 53 Content Outline (August 2024), Part 2, 2.2.2.4.
How often must a dealer inspect a municipal branch office that supervises no non-branch locations and is not an office of municipal supervisory jurisdiction?Answer: At least every three years. Source: MSRB Rule G-27(d)(i). Outline: MSRB Series 53 Content Outline (August 2024), Part 2, 2.3.5.
In MSRB Rule G-21, a letter or e-mail becomes a form letter when it is distributed to more than how many persons within 90 consecutive days?Answer: 25. Source: MSRB Rule G-21(a)(ii). Outline: MSRB Series 53 Content Outline (August 2024), Part 2, 2.4.6.1.
The principals who run a dealer's supervisory control system must report to senior management on the system, its test results and significant exceptions. How often?Answer: No less than annually. Source: MSRB Rule G-27(f)(i). Outline: MSRB Series 53 Content Outline (August 2024), Part 2, 2.3.4.
What is the yearly limit on gifts from a dealer that is a FINRA member to a person, when the gift relates to the municipal securities activities of that person's employer?Answer: $300. Source: MSRB Rule G-20(c). Outline: MSRB Series 53 Content Outline (August 2024), Part 2, 2.4.3.1.
Which associated person is outside the term municipal finance representative in Rule G-37?Answer: A representative who sells only to natural persons. Source: MSRB Rule G-37(g)(ii). Outline: MSRB Series 53 Content Outline (August 2024), Part 2, 2.4.4.1.
Which examination qualifies a person as a municipal securities sales principal?Answer: The General Securities Sales Supervisor Qualification Examination. Source: MSRB Rule G-3(c). Outline: MSRB Series 53 Content Outline (August 2024), Part 2, 2.2.1.5.5.
Sales supervision 13
A customer calls with an unsolicited order to buy a municipal bond. Does the time of trade disclosure duty in MSRB Rule G-47 apply?Answer: Yes. It applies whether a trade is unsolicited or recommended. Source: MSRB Rule G-47(a). Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.3.3.
A dealer has a control relationship with the issuer of a bond. What must happen before it buys that bond for a customer's discretionary account?Answer: The customer must specifically authorize the transaction. Source: MSRB Rule G-22(b). Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.5.1.
A dealer recommends a bond to a customer it reasonably concludes is a sophisticated municipal market professional. Regulation Best Interest does not apply. Which analysis does Rule G-48 remove?Answer: Customer-specific suitability. Source: MSRB Rule G-48(c). Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.3.4.
A dealer sells a customer a bond with a put option and wants it not to count as a guaranty against loss under Rule G-25(b). What makes that so?Answer: Its terms are given in writing with or on the confirmation and recorded. Source: MSRB Rule G-25(b). Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.4.2.
A dealer's procedures do not require a principal to review every piece of correspondence before it is sent. What must the procedures then include?Answer: Training on the procedures, records of it, and follow-up surveillance. Source: MSRB Rule G-27(e). Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.2.1.
A principal reviews an account with heavy in-and-out trading. Each recommended trade looks suitable by itself. Which obligation is the review testing?Answer: Quantitative suitability. Source: MSRB Rule G-19, Supplementary Material .05. Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.4.1.
An associated person of one dealer wants to open an account at another dealer in which municipal securities may be traded. What does Rule G-28 require first?Answer: Her employer's prior written consent. Source: MSRB Rule G-28(a). Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.1.4.
How often must a designated principal review and approve in writing the municipal securities transactions the dealer effects?Answer: Daily. Source: MSRB Rule G-27(c)(i)(G). Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.5.2.
What must a dealer's yearly notice to customers under MSRB Rule G-10 tell them, besides its SEC and MSRB registration?Answer: That an investor brochure on protections and complaints is on the MSRB's website. Source: MSRB Rule G-10(a). Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.6.3.
When does the suitability rule, MSRB Rule G-19, not apply to a recommendation of a municipal security?Answer: When Regulation Best Interest applies to it. Source: MSRB Rule G-19. Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.3.2.
Which complaints must a dealer enter in the complaint record of MSRB Rule G-8(a)(xii)?Answer: All written complaints of customers and of persons acting for them. Source: MSRB Rule G-8(a)(xii). Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.6.2.
Which part of Rule G-19 asks whether a recommendation is suitable for at least some investors?Answer: Reasonable-basis suitability. Source: MSRB Rule G-19, Supplementary Material .05. Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.3.2.
With no established business relationship, prior invitation or personal relationship, during which hours may a dealer place a telemarketing call to a person's home under Rule G-39?Answer: 8:00 a.m. to 9:00 p.m., local time of the person called. Source: MSRB Rule G-39(a)(i). Outline: MSRB Series 53 Content Outline (August 2024), Part 3, 3.2.2.
Origination and syndication 11
A dealer sells a customer bonds from a new issue. By when must it deliver the official statement under MSRB Rule G-32(a)?Answer: No later than the settlement of the transaction. Source: MSRB Rule G-32(a). Outline: MSRB Series 53 Content Outline (August 2024), Part 4, 4.2.3.1.
After the issuer delivers the securities to the syndicate, how long does the syndicate have to make final settlement of its account?Answer: 30 calendar days. Source: MSRB Rule G-11(i). Outline: MSRB Series 53 Content Outline (August 2024), Part 4, 4.2.6.6.
An underwriter receives the official statement from the issuer four days before closing. By when must it submit the document to EMMA?Answer: Within one business day after receiving it. Source: MSRB Rule G-32(b)(i)(B). Outline: MSRB Series 53 Content Outline (August 2024), Part 4, 4.2.3.2.
Before a Participating Underwriter bids for or offers bonds in an Offering under SEC Rule 15c2-12, what must it do?Answer: Obtain and review an official statement the issuer deems final. Source: SEC Rule 15c2-12(b)(1), 17 CFR 240.15c2-12. Outline: MSRB Series 53 Content Outline (August 2024), Part 4, 4.2.1.
In a negotiated offering, a potential customer asks the underwriter for the most recent preliminary official statement. How soon must a copy be sent?Answer: No later than the next business day. Source: SEC Rule 15c2-12(b)(2), 17 CFR 240.15c2-12. Outline: MSRB Series 53 Content Outline (August 2024), Part 4, 4.2.1.
In a negotiated sale, by when must the underwriter apply for CUSIP numbers for the new issue?Answer: No later than the time pricing information is finalized. Source: MSRB Rule G-34(a)(i)(A). Outline: MSRB Series 53 Content Outline (August 2024), Part 4, 4.2.5.1.
In MSRB Rule G-11, for whose account is a group order?Answer: All syndicate members, pro rata to their participations. Source: MSRB Rule G-11(a)(iii). Outline: MSRB Series 53 Content Outline (August 2024), Part 4, 4.2.2.1.
The underwriter's contract with the issuer must provide for copies of the final official statement within how long after any final agreement to purchase, offer or sell the securities?Answer: Seven business days. Source: SEC Rule 15c2-12(b)(3), 17 CFR 240.15c2-12. Outline: MSRB Series 53 Content Outline (August 2024), Part 4, 4.2.1.
Unless the issuer agrees otherwise, which orders must a syndicate's priority provisions put ahead of members' orders for their own accounts?Answer: Customer orders. Source: MSRB Rule G-11(e). Outline: MSRB Series 53 Content Outline (August 2024), Part 4, 4.2.2.5.
Which primary offering is exempt from SEC Rule 15c2-12 under paragraph (d)(1)?Answer: Bonds in $100,000 denominations maturing in nine months or less. Source: SEC Rule 15c2-12(d)(1), 17 CFR 240.15c2-12. Outline: MSRB Series 53 Content Outline (August 2024), Part 4, 4.2.1.
Which primary offering owes no underwriting fee to the MSRB under Rule A-13(b)?Answer: One made up entirely of municipal fund securities. Source: MSRB Rule A-13. Outline: MSRB Series 53 Content Outline (August 2024), Part 4, 4.2.6.1.
Trading 5
A dealer trades a municipal bond with a customer at 11:00 a.m. on an RTRS Business Day, and no exception applies. By when must the trade be reported under the Rule G-14 RTRS Procedures?Answer: As soon as practicable, and within 15 minutes of the time of trade. Source: MSRB Rule G-14 RTRS Procedures. Outline: MSRB Series 53 Content Outline (August 2024), Part 5, 5.3.2.
In MSRB Rule G-13, what is a nominal quotation?Answer: An indication of price given solely for informational purposes. Source: MSRB Rule G-13(b). Outline: MSRB Series 53 Content Outline (August 2024), Part 5, 5.1.2.
Two dealers hold bonds in a joint account. What does Rule G-13(c) forbid them to publish about those bonds?Answer: Quotations that indicate more than one market for the same securities. Source: MSRB Rule G-13(c). Outline: MSRB Series 53 Content Outline (August 2024), Part 5, 5.1.3.
What does the best execution rule, MSRB Rule G-18, require of a dealer handling a customer's order?Answer: Reasonable diligence to find the best market for the security. Source: MSRB Rule G-18. Outline: MSRB Series 53 Content Outline (August 2024), Part 5, 5.2.1.
Which firm is a broker's broker under MSRB Rule G-43?Answer: A dealer that principally effects transactions for other dealers. Source: MSRB Rule G-43. Outline: MSRB Series 53 Content Outline (August 2024), Part 5, 5.2.2.
Operations 8
A callable bond is sold to a customer on a dollar price. To which date is the yield on the confirmation computed under Rule G-15(a)?Answer: The lower of call or nominal maturity date. Source: MSRB Rule G-15(a). Outline: MSRB Series 53 Content Outline (August 2024), Part 6, 6.1.1.1.
A carrying dealer receives a customer's transfer instruction from the receiving dealer. How long does it have to validate the instruction or take exception to it under Rule G-26?Answer: One business day. Source: MSRB Rule G-26. Outline: MSRB Series 53 Content Outline (August 2024), Part 6, 6.3.
A customer holds $3,000 of a bond with a $5,000 minimum denomination, issued in 2015. May a dealer buy the whole position from her?Answer: Yes. A purchase that liquidates a below-minimum position is allowed. Source: MSRB Rule G-15(f). Outline: MSRB Series 53 Content Outline (August 2024), Part 6, 6.1.3.4.
An inter-dealer transaction was compared but the seller has not delivered. By when must it be closed out or cancelled under Rule G-12(h)?Answer: No later than 10 calendar days after settlement date. Source: MSRB Rule G-12(h). Outline: MSRB Series 53 Content Outline (August 2024), Part 6, 6.1.7.
For how long must a securities firm that is not a bank preserve its copies of customer confirmations under MSRB Rule G-9?Answer: Not less than four years. Source: MSRB Rule G-9(b). Outline: MSRB Series 53 Content Outline (August 2024), Part 6, 6.2.8.
In MSRB Rule G-12(g), what is a reclamation?Answer: The return of securities previously accepted for delivery. Source: MSRB Rule G-12(g). Outline: MSRB Series 53 Content Outline (August 2024), Part 6, 6.1.6.
What is the settlement date of a regular way inter-dealer transaction in municipal securities under Rule G-12(b)?Answer: The first business day after the trade date. Source: MSRB Rule G-12(b)(ii). Outline: MSRB Series 53 Content Outline (August 2024), Part 6, 6.1.2.
Which records must a non-bank dealer preserve for the life of the enterprise under Rule G-9(c)?Answer: Articles of incorporation, minute books and stock certificate books. Source: MSRB Rule G-9(c). Outline: MSRB Series 53 Content Outline (August 2024), Part 6, 6.2.8.
How this list was compiled: Our own questions, written to the MSRB's Municipal Securities Principal Qualification Examination (Series 53) Content Outline, last updated August 2024 (https://www.msrb.org/sites/default/files/2022-09/MSRB-Series-53-Content-Outline.pdf, read 2026-10-14): Part 1 federal regulations 4% of 100 scored questions, Part 2 general supervision 23%, Part 3 sales supervision 25%, Part 4 origination and syndication 23%, Part 5 trading 10%, Part 6 operations 15%. The bank of 50 holds 2, 11, 13, 11, 5 and 8. Every fact was read on 2026-10-14 in the public text the question names: on msrb.org, MSRB Rules A-13, D-15, G-3, G-8, G-9, G-10, G-11, G-12, G-13, G-14, G-15, G-16, G-18, G-19, G-20, G-21, G-22, G-25, G-26, G-27, G-28, G-32, G-34, G-37, G-38, G-39, G-43, G-47 and G-48; on ecfr.gov, SEC Rule 15c2-12; on sipc.org, What SIPC Protects. Licence: Questions, choices and explanations are original work of this site.
How it works
A free Series 53 study guide in two parts: the MSRB's content outline and 50 practice questions of our own, each naming its rule. Unofficial: not affiliated with, endorsed by or sponsored by the MSRB or FINRA. Not investment advice.
Read the full guide
Six parts, in the MSRB's shares
The MSRB's outline splits 100 scored questions: federal regulations 4 percent, general supervision 23, sales supervision 25, origination and syndication 23, trading 10 and operations 15. This bank of 50 holds 2, 11, 13, 11, 5 and 8.
Rules that changed
Answers follow the rule text on msrb.org as it read on 14 October 2026. Two recent changes are in the bank: the gift limit of Rule G-20 is $300 for dealers that are FINRA members, and regular way settlement is the next business day.
A timed run
The timed run asks all 50 in 89 minutes, the real pace of 110 questions in 3 hours and 15 minutes, with 70 percent to pass.
Pair the Rule G-27 inspection cycles: supervisory offices every year, a branch that supervises nothing every three years.
Rule G-9 sorts records into six years and four years, and gives bank dealers three in place of four.
Questions and answers
What is the Series 53 exam?
The MSRB's Municipal Securities Principal Qualification Examination. A municipal securities principal manages, directs or supervises a dealer's underwriting, trading, sales, recordkeeping or other municipal securities activities, as MSRB Rule G-3 defines the role.
Is there a free Series 53 study guide?
The MSRB's Series 53 content outline is a free PDF that lists each topic with its rule number, and five sample questions. The MSRB says it produces only the outline and endorses no course of study.
How many questions are on the Series 53 exam?
110 multiple-choice questions in 3 hours and 15 minutes. 100 are scored and 10 are unidentified pretest questions, added on October 1, 2024, that do not count.
What is the passing score for the Series 53?
70 percent. The MSRB's outline says each question is worth one point and the passing grade is 70%.
What do you need before taking the Series 53?
The MSRB lists two corequisites, the SIE and the Series 52, and a candidate must be associated with an MSRB registered dealer. The fee shown on the MSRB's page is $265.