Question

Municipal Securities Rule Board (MSRB) and Financial Industry Regulatory Authority (FINRA) rules specifically deter gaining political favor via contributions made to candidates, officials, or political parties. As such, if a political contribution is made to any of these entities then under the act, the firm may not provide advisory services to any government these individuals or parties represent for how long?

a) six months
b) three years
c) two years
d) five years

Answer 1

The Bipartisan Campaign Reform Act of 2002, also known as the McCain-Feingold Act, restricts political donations made to political parties. A firm that makes political contributions to municipal securities or financial industry regulatory entities is prohibited from providing advisory services to any government represented by those individuals or parties for two years.

Step-by-step explanation:

The Bipartisan Campaign Reform Act of 2002, also known as the McCain-Feingold Act, placed limits on political donations made to political parties, in an effort to reduce the influence of corporations and political action committees.

Under this act, if a firm makes a political contribution to municipal securities or financial industry regulatory entities, it is barred from providing advisory services to any government represented by these individuals or parties for two years.