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Broker-dealer ABC seeks to underwrite a municipal securities offering by a local town in which the mayor is currently seeking re-election. A municipal finance professional who resides in the town and works for ABC contributed $200 to the mayors re-election campaign further without impacting the municipal securities business of the firm, he is permitted to make an additional contribution of up to what amount?

A. $50
B. $100
C. $150
D. $250

User Ibaneight
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1 Answer

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Final answer:

The maximum additional contribution that the municipal finance professional can make is $250.

A municipal finance professional who has already contributed $200 to a mayoral candidate can contribute an additional $50 without impacting the business of the broker-dealer firm, as per MSRB Rule G-37.

Step-by-step explanation:

The maximum additional contribution that the municipal finance professional can make without impacting the municipal securities business of ABC is $250.

A municipal finance professional who has already contributed $200 to a mayoral candidate can contribute an additional $50 without impacting the business of the broker-dealer firm, as per MSRB Rule G-37.

The student has asked about the additional contribution limit that a municipal finance professional can contribute to a mayor's re-election campaign without impacting the business of the firm he works for. According to the regulations, individuals may contribute up to $2,900 per candidate per election cycle. However, in the context of a broker-dealer firm and municipal securities offerings, there are specific rules under MSRB Rule G-37 that deal with political contributions. The rule generally prohibits municipal securities businesses from engaging in business with a municipality for two years after any contribution to an official of such municipality, but it allows an exception for contributions from municipal finance professionals that do not exceed $250 per election to candidates for whom the professionals are entitled to vote. Since the professional in question has already contributed $200, they are permitted to make an additional contribution of up to $50.

User Juan Carlos Farah
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