Question

FINRA broker-dealer ABC seeks to underwrite a municipal securities offering by a local town in which the mayor is currently seeking reelection. A municipal finance professional who resides in town and works for ABC contributed $200 to the mayor's reelection campaign 13 months ago. If the employee wants to support the campaign further without impacting the municipal securities business of the firm, he is permitted to make an additional contribution of:

1) 50
2) 100
3) 150
4) 250

Answer 1

The municipal finance professional may contribute an additional $50 to the mayor's reelection campaign without affecting the firm's municipal securities business, staying within the $250 per-election limit set by the MSRB's Rule G-37.

Step-by-step explanation:

The question pertains to the rules regulating campaign contributions as they relate to a FINRA broker-dealer and municipal securities offerings. Under FINRA rules, specifically Rule G-37 of the Municipal Securities Rulemaking Board (MSRB), a municipal finance professional may contribute up to $250 per election to any candidate for whom the individual is entitled to vote and not be subject to a ban on municipal securities business. Given that the municipal finance professional has already contributed $200 to the mayor's reelection campaign 13 months ago, the additional amount the employee is allowed to contribute without impacting the municipal securities business of the firm is $50, which is the difference between the original contribution and the $250 per election limit.