Legal Authority (15 U.S.C. 78o-4; MSRB Rule G-7)

12-29-06

Miscellaneous Statutes and Regulations

9228.02-Bl"

(m) PROCEDURS AND RULES FOR SECURTY FuRE PRODUCTS.-A national securities

association registered pursuant to subsection (a) shall, not later than 8 months after the date
of the enactment of the Commodity Futues Modernization Act of 2000, implement the
procedures specified in section 6(h)(5)(A) of ths title and adopt the rules specified in

subparagraphs (B) and (C) of section 6(h)(5) of ths title.
(Codifed to 15 u.s.c. 780-3)

(Source: Section 15A of the Act of June 6, 1934 (Pub. L. No. 291), as added by section 1

of the Act of June 25, 1938 (Pub. L. No. 719; 52 Stat. 1070), effective June 25, 1938, and

amended by section 7 of the Act of August 20, 1964 (Pub. L. No. 88-467; (78 Stat.
574-578), effective August 20, 1964; section 12 of the Act of June 4, 1975 (Pub. L. No.

94-29; 89 Stat. 127), effective December 1, 1975; section 102(g) of title 1 of the Act of
October 28, 1986 (Pub. L. No. 99-571; 100 Stat. 3218), effective July 25, 1987; and section

509 of title V of the Act of October 15, 1990 (Pub. L. No. 101--29; 104 Stat. 957),
effective October 15, 1990; sections 106(b) of title 1 and 303(a) and (c) of title ILL of the
Act of December 17, 1993 (Pub. L. No. 103-202; 107 Stat. 2350, 2364 and 2366

respectively), effective December 17, 1993, except that the addition of paragraphs (b)(12)

and 13 is effective December 17, 1994; section 203 of title II of the Act of November 12,
1999 (Pub. L. No. 106-102; 113 Stat. 1391), effective May 12, 2001; sections 203(c) and
206(j and (k)(1) of title II of the Act of December 21, 2000 (Pub. L. No. 106-554; 114
Stat. 2763A--22 and 433), effective December 22, 2001; sections 5 and 6 of the Act of

September 29, 2006 (Pub. L. No. 109-291; 120 Stat. 1319 and 1320), effective September
29, 2006)

MUICIPAL SECURITIES
SEC. l5B (a)(l) It shall be unlawful for any municipal secunties dealer (other than

one registered as a broker or dealer under section 15 of ths title) to make use of the mails
or any means or instrmentaity of interstate commerce to effect any transaction in, or to
induce or attempt to induce the purchase or sale of, any municipal securty unless such

municipal securities dealer is registered in accordance with ths subsection.
(2) A municipal securities dealer may be registered by fiing with the Commssion an
application for registration in such form and containing such information and documents
concerning such municipal securities dealer and any persons associated with such municipal
securities dealer as the Commssion, by rule, may prescribe as necessar or appropriate in

the public interest or for the protection of investors. Within fort-five days of the date of
the filing of such application (or within such longer period as to which the applicant

consents), the Commission shall(A) by order grant registration, or
(B) institute proceedings to detennne whether registration should be denied. Such
proceedings shall include notice of the grounds for denial under consideration and
opportnity for hearng and shall be concluded within one hundred twenty days of the date

of the filing of the application for registration. At the conclusion of such proceedings the
Commssion, by order, shall grant or deny such registration. The Commssion may extend
the time for the conclusion of such proceedings for up to ninety days if it finds good cause
for such extension and publishes its reasons for so finding or for such longer period as to
which the applicant consents.
The Commssion shall grant the registration of a municipal securities dealer if the
Commssion finds that the requirements of ths section are satisfied. The Commssion shall
deny such registration if it does not make such a finding or if it finds that if the applicant
were so registered, its registration would be subject to suspension or revocation under
subsection (c) of this section.

(3) Any provision of this title (other than section 5 or paragraph (1) of this
subsection) which prohibits any act, practice, or course of business if the mails or any

means or instrmentality or interstate commerce is used in connection therewith shall also
prohibit any such act, practice. or course of business by any registered municipal securities

Securities Exchange Act of 1934,
Federa Depoit Inurance Corporation

15 U.S.C. 780-

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Miscellaneous Statutes and Regulations

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dealer or any person acting on behalf of such municipal securities dealer, irespective of
any use of the mails or any means or instrmentality of interstate commerce in connection

therewith.
(4) The Commssion. by rule or order, upon its own motion or upon application, may

conditionally or unconditionally exempt any broker, dealer, or municipal securities dealer or
class of brokers, dealers, or municipal securities dealers from any provision of ths section
or the rules or regulations thereunder. if the Commssion finds that such exemption is
consistent with the public interest, the protection of investors. and the puroses of ths
section.

(b)(1) Not later than one hundred twenty days after the date of enactment of the
Securities Acts Amendments of 1975. the Commssion shall establish a Municipal Securities

Rulemakng Board (hereinafter in ths section referred to as the "Board"), to be composed
intially of fifteen members appointed by the Commssion, which shall perform the duties
set forth in ths section. The. initial members of the Board shall serve as members for a
term of two years, and shall consist of (A) five individuals who are not associated with any
broker, dealer. or municipal securities dealer (other than by reason of being under common
control with, or indirectly controllng. any broker or dealer which is not a municipal
securities broker or municipal securities dealer). at least one of whom shall be representative of investors in municipal securties, and at least one of whom shall be representative of

issuers of municipal securties (which members are hereinafter referred to as "public
representatives"); (B) five individuals who are associated with and representative of
municipal securities brokers and municipal securities dealers which are not ban or
subsidiaies or deparments or divisions of bans (which members are hereinafter referred to
as "broker-dealer representatives"); and (C) five individuals who are associated with and
representative of municipal securities dealers which are bans or subsidiares or deparments

or divisions of bans (which members are hereinafter referred to as "ban representatives").
Pror to the expiration of the terms of offce of the initial members of the Board, an

election shall be held under rules adopted by the Board (pursuant to subsection (b)(2)(B) nf
ths section) of the members to succeed such initial members.

(2) The Board shall propose and adopt rules to effect the purposes of ths title with
respect to transactions in municipal securities effected by brokers. dealers. and municipal
securties dealers. (Such rules are hereinafter collectively referred to in ths title as "rules of

the Board".) The rules of the Board, as a minimum, shall:

(A) provide that no municipal securities broker or municipal securties dealer shall

effect any transaction in, or induce or attempt to induce the purchase or sale of, any
municipal securty unless such municipal securities broker or municipal securties dealer
meets such standards of operational capability and such municipal securities broker or
municipal securties dealer and every natural person associated with such municipal

securities broker or municipal securties dealer meet such standard of training, experience,
competence, and such other qualifications as the Board finds necessar or appropriate in the
public interest or for the protection of investors. In connection with the definition and

application of such stadards the Board may(i) appropriately classify municipal securties brokers and municipal . securties
dealers (takng into account relevant matters, including types of business done, nature of

securities other than municipal securities sold. and character of business organzation), and
persons associated with municipal securties brokers and municipal securties dealers;
(ii) specify that all or any portion of such standards shall be applicable to any

such class;
(iii) require persons in any such class to pass tests administered in accordance

with subsection (c )(7) of ths section; and

Securities Exchange Act of 1934,

15 U.S.C. 780-

Federal Deposit Inurace Corpration

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Miscellaneous Statutes and Regulations

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(iv) provide that persons in any such class other than municipal securties

brokers and municipal securities dealers and parners, offcers. and supervisory employees of
municipal securties brokers or municipal securities dealers. may be qualified solely on the
basis of compliance with such standards of training and such other qualifications as the
Board finds appropriate.
(B) establish fair procedures for the nomination and election of members of the

Board and assure fair representation in such nominations . and elections of municipal

securities brokers and municipal securities dealers. Such rule shall provide that the
membership of the Board shall at all times be equally divided among public representatives,
broker-dealer representatives. and ban representatives. and that the public representatives
shall be subject to approval by the Commission to assure that no one of them is associated
with any broker, dealer. or municipal securities dealer (other than by reason of being under
common control with, or indirectly controllng, any broker or dealer which is not a
municipal securities broker or municipal securties dealer) and that at least one is
representative of investors in municipal securities and at least one is representative of

issuers of municipal securities. Such rules shall also specify the term members shall serve
and may increase the number of members which shall constitute the whole Board provided
that such number is an odd number.

(C) be designed to prevent fraudulent and manipulative acts and practices, to

promote just and equitable principles of trade, to foster cooperation and coordination with

persons engaged in regulating, clearng. settlng, processing information with respect to, and
facilitating transactions in municipal securities, to remove impediments to and perfect the
mechanism of a free and open market in municipal securities, and, in general, to protect

investors and the public interest; and not be designed to pennt unfai discrimination
between customers, issuers, municipal securties brokers, or municipal securties dealers. to
fix minimum profits, to impose. any schedule or fix rates of commssons. allowances,

discounts, or other fees to be charged by municipal securities brokers or municipal
securities dealers, to regulate by virue of any authority conferred by ths title matters not
related to the purposes of ths title burden on competition not necessar or appropriate in

furterance of the purposes of this title.
(D) if the Board deems appropriate, provide for the arbitration of claims, disputes,
and controversies relating to transactions in municipal securities: Provided, however, That no

person other than a municipal securties broker. municipal securities dealer, or person

associated with such a municipal securities broker or municipal securities dealer may be
compelled to such arbitration except at his instance and in accordance with section 29 of
this title.
(E) provide for the periodic examiation in accordance with subsection (c)(7) of
ths section of municipal securities brokers and municipal securities dealers to detennne

compliance with applicable provisions of ths title. the rules and regulations thereunder, and
the rules of the Board. Such rules shall specify the minimum scope and frequency of such
examnations and shall be designed to avoid unnecessar regulatory duplication or undue

regulatory burdens for any such municipal securties broker or municipal securities dealer.
(F) include provisions governing the form and content of quotations relating to
municipal securities which may be distrbuted or published by any municipal securities
broker, municipal securities dealer. or person associated with such a municipal securties
broker or municipal securities dealer. and the persons to whom such quotations may be
supplied. Such rules relating to quotations shall be designed to produce fair and informative
quotations. to prevent fictitious or misleading quotations. and. to promote orderly procedures
for collecting. distrbuting, and publishing quotations.

(G) prescribe records to be made and kept by municipal securities brokers and
municipal securities dealers and the periods for which such records shall be preserved.

(H) define the term "separately identifiable deparent or division", as that term is
used in section 3(a)(30) of ths title. in accordance with specified and appropriate standards

to assure that a bank is not deemed to be engaged in the business of buying and sellng
municipal securities through a separately identifiable deparent or division unless such

Securities Exchange Act of 1934,
Federa Deposit Insurance Corpration

15 U.S.C. 780-

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Miscellaneous Ståtutes and Regulations

8-30-02

deparment or division is organized and administered so as to permt independent

examnation and enforcement of applicable provisions of this title, the rules and regulations
thereunder, and the rules of the Board. A separately identifiable deparent or division of a
bank may be engaged in activities other than those relating to municipal securities.
(I) provide for the operation and administration of the Board. including the

selection of a Chairman from among the members of the Board. the compensation of the
members of the Board, and the appointment and compensation of such employees.

attorneys. and consultants as may be necessar or appropriate to car out the Board's
functions under this section.
(J) provide that each municipal securities broker and each municipal securities

dealer shall pay to the Board such reasonable fees and charges as may be necessar or
appropriate to defray the costs and expenses of operating and administering the Board. Such

rules shall specify the amount of such fees and charges.
(K) establish the terms and conditions under which any municipal securities dealer
may sell. or prohibit any municipal securities dealer from sellng. any par of a new issue

of municipal securities to a municipal securities investment portolio durng the underwriting period.

(3) Nothing in this section shall be construed to impair or limit the power of the
Commssion under this title.
(c)(l) No broker, dealer. or municipal securities dealer shall make use of the mails or

any means or instrmentality of interstate commerce to effect any transaction in, or to
induce or attempt to induce the purchase or sale of. any municipal securty in contravention

of any rule of the Board.

(2) The Commission, by order. shall censure. place limitations on the activities.
functions. or operations. suspend for a period not exceeding twelve months or revoke the
registration of any municipal securities dealer. if it finds, on the record after notice and
opportunity for hearng, that such censure. placing of limitations, denial, suspension, or
revocation, is in the public interest and that such municipal securties dealer has commtted
I or omitted any act or omission enumerated in subparagraph (A), (D), (E). (H) or (G) of

paragraph (4) of section l5(b) of this title. has been convicted of any offense specifed in
subparagraph (B) of such paragraph (4) within ten years of the commencement of the
proceedings under this paragraph, or is enjoined from any action, conduct. or practice
specified in subparagraph (C) of such paragraph (4).
(3) Pending final determination whether any registration under this section shall be
revoked. the Commssion, by order, may suspend such registration. if such suspension
appears to the Commssion. after notice and opportunity for hearng. to be necessar or
appropriate in the public interest or for the protection of investors. Any registered municipal

securities dealer may, upon such terms and conditions as the Commssion may deem
necessar in the public interest or for the protection of investors, withdraw from registration

by filing a written notice of withdrawal with the Commission. If the Commssion finds that
any registered municipal securities dealer is no longer in existence or has ceased to do
business as a municipal securities dealer. the Commission. by order, shall cancel the
registration of such municipal securities dealer.

(4) The Commission, by order. shall censure or place limitations on the activities or
functions of any person associated, seeking to become associated, or, at the time of the
alleged misconduct, associated or seeking to become associated with a municipal securities
dealer, or suspend for a period not exceeding twelve months or bar any such person from
being associated with a municipal securities dealer, if the Commssion finds. on the record
after notice and opportunity for hearng. that such censure. placing of limitations.
suspension, or bar is in the public interest and that such person has commtted any act or
I omission enumerated in subparagraph (A). (D), (E), (H) or (G) of paragraph (4) of section

l5(b) of this title, has been convicted of any offense specified in subparagraph (B) of such

paragraph (4) within 10 years of the commencement of the proceedings under ths
paragraph, or is enjoined from any action, conduct. or practice specified in subparagraph

(C) unlawful for any person as to whom an order entered pursuant to this paragraph or

Securities Exchange Act of 1934,

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Federal Deposit Insurance Corporation

8-30-02

Miscellaneous Statutes and Regulations

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paragraph (5) of ths subsection suspending or barng him from being associated with a
municipal securities dealer is in effect willfully to become. or to be, associated with a
municipal securities dealer without the consent of the Commission, and it shall be unlawful
for any municipal securities dealer to permit such a person to become, or remain. a person
associated with him without the consent of the Commission. if such municipal securities
dealer knew, or, in the exercise of reasonable care should have known. of such order.
(5) With respect to any municipal securities dealer for which the Commission is not

the appropriate regulatory agency. the appropriate regulatory agency for such municipal

securities dealer may sanction any such municipal securities dealer in the manner and for
the reasons specified in paragraph (2) of this subsection and any person associated with

such municipal securities dealer in the manner and for the reasons specified in paragraph
(4) of this subsection. In addition. such appropriate regulatory agency may. in accordance
with section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), enforce compliance

by such municipal securities dealer or any person associated with such municipal securties
dealer with the provisions of ths section. section 17 of this title, the rules of the Board.

and the rules of the Commssion pertaining to municipal securities dealers, persons
associated with municipal securities dealers, and transactions in municipal securties. For
purposes of the preceding sentence, any violation of any such provision shall constitute
adequate basis for the issuance of any order under section 8(b) or 8(c) of the Federal

Deposit Insurance Act. and the customers of any such municipal securities dealer shall be
deemed to be "depositors" as that term is used in section 8(c) of that Act. Nothing in ths
paragraph shall be constred to affect in any way the powers of such appropriate regulatory

agency to proceed against such municipal securities dealer under any other provision of law.
(6)(A) The Commission, prior to the entry of an order of investigation. or commencement of any proceedings. against any municipal securities dealer. or person associated with
any municipal securities dealer. for which the Commssion is not the appropriate regulatory
agency, for violation of any provision of this section, section l5(c)(1) or l5(c)(2) of ths

title, any rule or regulation under any such section, or any rule of the Board, shall (i) give
notice to the appropriate regulatory agency for such municipal securities dealer of the
identity of such municipal securities dealer or person associated with such municipal

securities dealer, the nature of and basis for such proposed action, and whether the
Commssion is seeking a monetar penalty against such municipal securities dealer or such

associated person pursuant to section 21B of this title; and (ii) consult with such
appropriate regulatory agency concerning the effect of such proposed action on sound
banking practices and the feasibilty and desirabilty of coordinating such action with any

proceeding or proposed proceeding by such appropriate regulatory agency against such
municipal securities dealer or associated person.

(B) The appropriate regulatory agency for a municipal securities dealer (if other
than the Commission). prior to the entr of an order of investigation. or commencement of
any proceedings. against such municipal securities dealer or person associated with such
municipal securities dealer. for violation of any provision of this section, the rules of the

Board, or the rules or regulations of the Commission pertaining to municipal securities

dealers, persons associated with municipal securities dealers, or transactions in municipal
securities shall (i) give notice to the Commission of the identity of such municipal
securities dealer or person associated with such municipal securities dealer and the nature of
and basis for such proposed action and (ii) consult with the Commission concerning the

effect of such proposed action on the protection of investors and the feasibility and
desirabilty of coordinating such action with any proceeding or proposed proceeding by the
Commission against such municipal securities dealer or associated person.
(C) Nothing in this paragraph shall be construed to impair or limit (other than by

the requirement of prior consultation) the power of the Commssion or the appropriate
regulatory agency for a municipal securities dealer to initiate any action of a class described
in this paragraph or to affect in any way the power of the Commssion or such appropriate
regulatory agency to initiate any other action pursuant to this title or any other provision of
law.

Federal Deposit Insurance Corporation

Securities Exchange Act of 1934,
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9228.06

Miscellaneous Statutes and Regulations

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(7)(A) Tests required pursuant to subsection (b)(2)(A)(iii) of ths section shall be

administered by or on behalf of and periodic examinations pursuant to subsection (b)(2)(E)

of this section shall be conducted by(i) a registered securties association, in the case of municipal securties brokers

and municipal securities dealers who are members of such association; and
(ii) the appropriate regulatory agency for any municipal securities broker or

municipal securities dealer. in the case of all other municipal securties brokers and
municipal securities dealers.

(B) A registered securities association shall make a report of any examnation
conducted pursuant to subsection (b)(2)(E) of ths section and promptly furnsh the

Commssion a copy thereof and any data supplied to it in connection with such
examination. Subject to such limitations as the Commssion, by rule, determnes to be
necessar or appropriate in the public interest or for the protection
investors,
of of
any
report ofthe
an
Commssion shall. on request, make available to the Board a copy

examnation of a municipal securities broker or municipal securities dealer made by or

furnished to the Commssion pursuant to this paragraph or section I7(c)(3) of this title.
(8) The Commssion is authorized, by order, if in its opinion such action is necessar
or appropriate in the public interest, for the protection of investors. or otherwise. in
furherance of the purposes of this title. to remove from offce or censure any member or

employee of the Board, who, the Commssion finds. on the record after notice and
opportnity for hearng, has wilfully (A) violated any provision of ths title. the rules and
regulations thereunder, or the rules of the Board or (B) abused his authority.
(d)(l) Neither the Commssion nor the Board is authorized under ths title, by rule or
regulation, to require any issuer of municipal securities, diectly or indiectly though a
purchaser or prospective purchaser of securties from the issuer, to me with the Commssion
or the Board prior to the sale of such securities by the issuer any application, report, or
document in connection with the issuance, sale, or distrbution of such securities.
(2) The Board is not authorized under ths title to require any issuer of municipal

securities. directly or indirectly though a municipal securities broker or municipal securities
dealer or otherwise. to furnsh to the Board or to a purchaser or a prospective purchaser of

such securities any application, report, document. or information with respect to such issuer:
Provided, however, That the Board may require municipal securities brokers and municipal
securities dealers to furnsh to the Board or purchasers or prospective purchasers of

municipal securities applications, reports, documents. and information with respect to the
is generally available from a source other than such issuer. Nothing in
issuer thereof which
this paragraph shall be constred to impai or limit the power of the Commssion under any
provision of this title.

¡Codifed to 15 U.S.c. 780-)

¡Source: Section 15B of the Act of June 6, 1934 (Pub. L. No. 291), as added by section
13 of the Act of June 4, 1975 (Pub. L. No. 94-29; 89 Stat. 131), effective June 4, 1975,
except section 15B(a) effective December 1, 1975, as amended by section 4(a) and (b) of

the Act of June 6, 1983 (Pub. L. No. 98-38; 97 Stat. 207), effective June 6, 1983; sections
318, 319 and 320 of title II of the Act of December 4, 1987 (Pub. L. No. 100-181; 101
Stat. 1256), effective December 4, 1987; and section 205 of the title II of the Act of

October 15, 1990 (Pub. L. No. 101-429; 104 Stat. 941) effective October 15, 1990; section

203(c)(l) of title II of the Act of November 15, 1990 (Pub. L. No. 101-550; 104 Stat.
2718), effective November 15, 1990; section 301(b)(9) of title II of the Act of November 3,
1998,
(Pub. L. No. 105-353; 112 Stat. 3236), effective November 3, 1998; section
604(c)(1)(B) of title VI of the Act of November 30, 2002 (Pub. L. No. 107-204; 116 Stat.
796), effective July 30, 2002)

GOVERNNT SECURITIES BROKERS AND DEALERS
SEC. l5C. (a)(I)(A) It shall be unlawful for any government securities broker or
government securities dealer (other than a registered broker or dealer or a financial

institution) to make use of the mails or any means or instrmentality of interstate

Securities Exchange Act of 1934,

15 U.S.C. 780-

Federal Deposit Inurance Corpration

Information Concerning
Associated Persons
Home Page I Back

Rule G-7. (a) No associated person (as hereinafter defined) of a broker, dealer or municipal
rule G-2 of
securities dealer shall be qualified for purposes of
the Board unless such associated
person meets the requirements ofthis rule. The term "associated person" as used in this rule means
(i) a municipal securities principal, (ii) a municipal securities sales principal, (iii) a financial and
operations principal, and (iv) a municipal securities representative.
(b) Every broker, dealer and municipal securities dealer shall obtain from each of its associated
this rule), and each associated person shall furnish to the broker,
dealer or municipal securities dealer with which such person is or seeks to be associated, a

persons (as defined in section (a) of

questionnaire, which shall be signed by a municipal securities principal or general securties

principal, containing at least the following information:

(i) such person's name, residence address, social securty number, and the starting date or anticipated
starting date of such person's employment or other association with such broker, dealer or municipal
securities dealer;
(ii) date of birth;

(iii) a complete, consecutive statement of employment and personal history for at least the
immediately preceding ten years, including full time and part time employment, self employment,
military service, unemployment, or full-time education. For each period of employment, the position
held at the time of leaving said employment;
(iv) a record of all residential addresses for at least the immediately preceding five years;
(v) a record of any denial of membership or registration, and of any disciplinary action taken against,
or sanction imposed upon, such person by any federal or state securities or federal or state bank
regulatory agency or by any national securities exchange or registered securities association,
including any finding that such person was a cause of any disciplinary action or violated any law;
(vi) a record of any denial, suspension or revocation of registration with the Commission as a broker,
dealer, or municipal securities dealer or of any denial, suspension or revocation of, or expulsion

from, membership in a national securities exchange or a registered securities association, of any
broker, dealer, or municipal securities dealer with which such person was associated in any capacity
when such action was taken;
(vii) a record of any permanent or temporary injunction entered against such person pursuant to
which such person was enjoined from acting as an investment advisor, underwriter, broker, dealer, or
municipal securities dealer, or from engaging in or continuing any conduct or practice in connection
with any such activity, or in connection with purchase or sale of any security;

(viii) a record of any convictions of such person within the past ten years involving the purchase or
sale of any security, the taking of a false oath, the making of a false report, bribery, peijury, burglar,
or conspiracy to commit any such offense; or arising out of the conduct of the business of a broker,
dealer, municipal securities dealer, investment advisor, bank, insurance company or fiduciar; or
involving the larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment,
embezzlement, fraudulent conversion, or misappropriation of funds or securities; or involving the
violation of section 152, 1341, 1342, or 1343 or chapter 25 or 47 of title 18, United States Code;
(ix) a record of any refusal by a surety company to issue a fidelity bond covering such person; any
payments made by a surety company on coverage of such person or cancellation of such coverage;
and a statement whether such person is currently bonded; and
(x) a record of any other name or names by which such person has been known or which such person
has used.

A completed Form U-4 or similar form prescribed by the Commission or a registered securities
association for brokers, dealers and municipal securities dealers other than bank dealers or, in the
case of a bank dealer a completed Form MSD-4 or similar form prescribed by the appropriate
regulatory agency for such ban dealer, containing the foregoing information, shall satisfy the

requirements of this section.
this
rule is or becomes materially inaccurate or incomplete, such associated person shall furnish in
writing to the broker, dealer or municipal securities dealer with which such person is or seeks to be
associated a statement correcting such information.
(c) To the extent any information furnished by an associated person pursuant to section (b) of

verifying the information furnished by an associated person pursuant to
section (b) of this rule, every broker, dealer and municipal securities dealer shall make inquiry of all
. employers of such associated person during the three years immediately preceding such person's
association with such broker, dealer or municipal securities dealer concerning the accuracy and
completeness of such information as well as such person's record and reputation as related to the
person's ability to perform his or her duties and each such prior employer which is a broker, dealer
or municipal securities dealer shall make such information available within ten business days
(d) For the purpose of

following a request made pursuant to the requirements of

this section (d).

(e) Every broker, dealer and municipal securities dealer shall maintain and preserve a copy of

questionnaire furnished pursuant to section (b) ofthis rule, and of any additional statements

the

this rule, until at least three years after the associated person's
employment or other association with such broker, dealer or municipal securties dealer has
terminated.
furnished pursuant to section (c) of

(f) Every broker, dealer and municipal securities dealer shall maintain and preserve a record ofthe
name and residence address of each associated person, designated by the category of function
performed (whether municipal securities principal, municipal securities sales principal, municipal
securities representative or financial and operations principal) and indicating whether such person
has taken and passed the qualification examination for municipal securities principals, municipal
securities sales principals, municipal securities representatives or financial and operations principals
prescribed by the Board or was exempt from the requirement to take and pass such examination,
indicating the basis for such exemption, until at least three years after the associated person's
employment or other association with such broker, dealer or municipal securities dealer has
terminated.
(g) Every broker, dealer and municipal securities dealer which is a member of a registered securties
association shall file with such association, every ban dealer shall file with the appropriate
regulatory agency for such ban dealer, and every broker, dealer or municipal securties dealer other
than a bank dealer which is not a member of a registered securities association shall file with the
the information prescribed by this rule as such association, agency, or the
Commission, such of
Commission, respectively, shall by rule or regulation require.
(h) Any records required to be maintained and preserved pursuant to this rule shall be preserved in
accordance with the requirements of sections (d), (e) and (f) of rule G-9 ofthe Board.

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