Question

while taking the train home from the office one day, a registered representative sees the municipal underwriting manager from his office and they both begin talking about local politics. they specifically discuss the mayoral race in the town in which they both reside. the municipal underwriting manager mentions that he's thinking about making a contribution to one of the candidates who's running for mayor. under msrb rules, how much can the municipal underwriting manager contribute without disqualifying the firm from participating as an underwriter in the issuance of the municipality's bonds?

Answer 1

The MSRB Rule G-37 allows a municipal underwriting manager to contribute up to $250 to a mayoral candidate they can vote for without disqualifying their firm from underwriting municipal bonds for that municipality.

Step-by-step explanation:

Under the Municipal Securities Rulemaking Board (MSRB) rules, specifically Rule G-37, the municipal underwriting manager is permitted to contribute up to $250 to candidates for whom they are entitled to vote without disqualifying their firm from participating as an underwriter in municipal securities business with that issuer.

If the underwriting manager contributes more than that amount, the firm would be disqualified from engaging in underwriting activities with that municipality for a defined period, typically two years from the date of the contribution.