This course is designed to provide representatives with a general understanding of fixed income securities - what they are, how they can be employed in an investor's portfolio, and the risks and rewards involved in investing in fixed income securities.
- Types of fixed income securities, including Treasury bonds, agency securities, municipal securities, mortgage-backed securities, collateralized mortgage obligations, and preferred stock - The role of intermediaries in the fixed income market - How fixed income securities are bought and sold - What types of investors may purchase fixed income securities - US and global bond markets - Suitability and sales process considerations
Anti-Money Laundering for Municipal Securities Representatives (FE)
This course is intended for registered securities representatives and supervisors interested in learning how industry rules regarding anti-money laundering regulations. Every municipal securities dealer must establish and implement an anti-money laundering compliance program designed to achieve and monitor ongoing compliance with the requirements of the Bank Secrecy Act, 31 U.S.C. 5311, et seq. (BSA).
- Overview of Money Laundering
- Awareness of AML Regulations
- Definition of Money Laundering
- How Money Laundering is Done
- Overview of Federal Efforts
- Impact on Your Broker Dealers and Clients
- Enhanced Customer Identification
- CDD Rule
- Additional Reporting Requirements
- Money Laundering Suspicious Activities
- Overview of Penalties
Auction Rate Securities (FE)
This course is intended for representatives, investment advisers, institutional representatives, traders and supervisors who have a well-rounded background in the issuance, distribution, and risk-analysis of conventional securities. Those taking this course should have an intermediate understanding of the securities markets and the wide variety of securities products being offered to investors.
This course provides a detailed review of the first auction rate security for the tax-exempt market, which was introduced by Goldman Sachs in 1988. More specifically, the course provides background on auction rate securities, defines the various types of ARS orders, and uncovers the 2008 auction failures.
- Background and Definition - Types of ARS Orders - The SEC Cease-and-Desist Order of 2006 - Auction Failures - Centralized Access to Municipal Auction Rate Security Information - Apparent Benefits of Auction Rate Securities
Basics of Bond Investing (FE)
This course is intended for registered representatives, supervisors and other financial service professional interested in learning more about the bond markets in general. Individuals taking this course should already have a basic understanding of how bonds are issued, purchased and sold. One of the most common debt instruments used to raise or borrow capital is bonds. This course provides an introduction to corporate bonds, how they are priced, how they are traded and how they can be used to finance specific needs. One of the most common debt instruments used to raise or borrow capital is bonds. This course provides an introduction to corporate bonds, touching on topics from how they are priced, how they are traded, and how they can be used to finance specific needs.
- Bonds as IOUs - Making Money off of Bonds - The Bond Rating System - Yield to Maturity - Government Bonds - Municipal Bonds - Corporate Bonds - Zero-Coupon Bonds
Customer Data Protection and the Municipal Securities Representative (FE)
This course is intended for municipal representatives, supervisors, investment advisers or any financial service industry professional interested in learning how industry rules apply to the use and supervision of customer data. As a municipal representative, you need to know and follow your firm's policies and procedures for customer data protection. Failing to protect non-public customer information can make your customer vulnerable to identify theft. This is a serious issue for many businesses within, as well as outside of, the securities industry.
- SEC Rule 30 of Regulation S-P - Data Vulnerability - Municipal Representative Responsibilities - Examples of Customer Data Protection for the Municipal Securities Representative - Conclusion
Ethics and Professional Conduct for the Municipal Securities Representative (FE)
This course is intended for municipal securities brokers, municipal securities dealers, municipal securities sales representatives, municipal finance professionals (MFPs) and their supervisors. This course is geared towards the municipal securities representative discussing the nature of ethics and to whom the representative has an ethical responsibility. The course explains the importance of increased professionalism and offers practical guidelines for ways representatives can differentiate themselves ethically and professionally on a daily basis.
- Ethical Conduct - Important Concepts for Ethical and Professional Conduct - Due Diligence & Valuing Professionalism - Industry Ethics - Cross-Selling, Switching and Churning - Helping the Client & Compliance and Ethics
Fixed Rate Primary Market Offerings (FE)
This introductory level course provides intricate background to the roles and responsibilities of market participants in fixed rate primary market offerings. The course begins with an overview of the defining characteristics of primary and secondary market transactions. After that, the bond offering process is discussed, highlighting important participants, including: municipal advisors, bond counsel, underwriters, auditors, trustees and much more.
- Primary and Secondary Market Transactions
- Bond Characteristics
- Issuer Risk and Default
- Interest Rates
- Borrowers in the Primary Market
- Negotiated Transactions
- Market Participants: Roles and Responsibilities
MSRB Rule G-3 (FE)
This course begins with a brief overview of the two new classifications created when the MSRB revised Rule G-3 to meet the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. From there, the course covers basic knowledge of the internal workings, qualifications, and required continuing education of the municipal advisory system.
- Professional Qualification Requirements
- Changes to Limited Representative Qualifications and FINOP Requirements
- New Classification created by Dodd-Frank
- Training and Qualification for MAS
- Qualification Requirements: Continuing Education
NEW! - MSRB Rule G-42: The Fiduciary Duty Rule
MSRB Rule G-42 sets forth municipal advisors' required standards of conduct and duties when engaging in municipal advisory activities, other than municipal advisory solicitation activities. This course provides a brief overview of the duties and obligations under G-42, disclosure requirements for conflicts of interest and prohibited municipal advisor activities.
MSRB Rules and Risks (FE)
This introductory course provides registered representatives with a better understanding of MSRB rules and risks as they relate to the municipal securities market. Specifically, this course outlines the MSRB's recent compliance advisory and offers background to suitability obligations, pay-to-play restrictions, risk considerations, the revised Series 50 examination and much more.
This course addresses the recently effective requirement for municipal advisors to register with the SEC and the MSRB, including what types of firm is (and is not) considered a municipal advisor, the MSRB rules that apply to municipal advisors, and the types of policies and procedures a municipal advisor firm should implement to be ready for MSRB oversight as a regulated entity.
- Municipal Securities and Municipal Advisors
- Dodd-Frank and changes to Municipal Advisor regulation
- The MSRB - history, rulemaking process, and enforcement
- Definition of key terms
- MSRB Rules for Municipal Advisors - current and proposed
- Expectations for Municipal Advisors - supervision, books and records, etc.
Municipal Advisors, Municipal Underwriters, Advice and the MSRB (FE)
This is not a course on the Municipal Advisor Rule, but rather, addresses elements within the Rule, now that the dust has settled. The course identifies the municipal advisor, municipal underwriter, and advice as it is applied to new issues from a municipal entity or obligated person. After designating that which differentiates the municipal advisor from the municipal underwriter, the MSRB rules are used to demonstrate that which they shared equally.
- Simplifying elements of the Municipal Advisor Rule
- Identifying who is and who is not a municipal advisor
- Identifying who is and who is not a municipal underwriter
- Evaluating what is and what is not advice
- Describing how implementation of MSRB rules make municipal advisors and municipal underwriters equals
- Applying Gifts and Gratuities, Rule G-20
- Applying Political Contributions, Rule G-37
- Reviewing applicable disciplinary actions
Municipal Bond Investing and Regulation (FE)
This course is intended for municipal securities brokers, municipal securities dealers, municipal securities sales representatives, municipal finance professionals (MFPs) and their supervisors. This course looks at the general investment features and risks associated with municipal bond investing. The course reviews the regulations and enforcement agencies that govern the municipal bond arena. Additionally, the course explores investor suitability and mandated disclosure.
- Municipal Bond Overview - Regulation - MSRB Enforcement - Two Common Types of Municipal Bonds - Risk Factors - Ratings Agencies - Bond Insurance and Credit Ratings - Interest Rate Risk - Investor Suitability
SEC Rule 15c2-12 (FE)
The course discusses how the SEC Rule 15c2-12 and its subsequent amendments are designed to provide enhanced information to municipal securities investors by further regulating those who underwrite or sell such municipal securities.
This course discusses the Securities and Exchange Commission (SEC) Rule 15c2-12 on municipal securities disclosure and its program to resolve outstanding disclosure violations: the Municipalities Continuing Disclosure Cooperation Initiative (MCDC).
- Rule 15c2-12 adoption and amendments
- Enforcement authority
- Purpose and terms of the MCDC Initiative
- MCDC settlement guidelines
- Penalties for individuals
- Underwriter enforcement actions
- Focusing on issuer settlements
- Evaluating self-reporting under the MCDC
- Avoiding Future Disclosure Failures
- Bank loan and debt disclosure
Supervision of Municipal Securities Representatives (FE)
This course is intended for supervisors of municipal securities representatives. The Municipal Securities Rulemaking Board (MSRB) has made great strides to develop systems and regulations that lend more transparency to the Municipal Securities Markets. This course discusses overall supervisory responsibilities for a manager of municipal securities representatives. It also explains basic hiring and registration requirements for representatives, the licenses that are required to sell municipal securities and supervise registered representatives, as well as supervisory controls and record-keeping best practices for municipal broker-dealers.
- Classifications of Principals and Representatives - Supervisory Obligation - Written Record - Appropriate Principal - Written Supervisory Procedures - Internal Office Inspections - Heightened Office Inspections - Correspondence Review - Supervisory Control System - Responding to Complaints
The Role of the FINOP (FE)
Each FINRA member firm is required to engage the services of a registered financial and operations principal, also known as the "FinOp" or "FINOP". Whether within a clearing firm or introducing broker-dealer, working as a full-time or outsourced provider, the role of the FINOP remains a critical function of the firm. This course is designed to provide an overview of the role and responsibilities of the firm FINOP, highlight various reporting requirements and their mechanisms, and identify more recent regulatory changes that affect the FINOP role and firm reporting.
- Reporting and books and records requirements - Supervision obligations - Net capital requirements and calculations - Applicable MSRB, Federal Reserve Board, SEC, FINRA/NASD and other Rules and Regulations