Final answer:
MSRB's political contribution: MFP has a max. of $20,000 per election for whom they vote.
Explanation:
The Municipal Securities Rulemaking Board (MSRB) is a self-regulatory organization that oversees the municipal securities industry. One of its important functions is to regulate the political contributions made by municipal securities dealers, known as the Municipal Finance Professional (MFP). The MFP is defined as any individual who solicits municipal securities business for the dealer or manages the dealer's municipal securities business.
According to MSRB Rule G-37, MFPs are limited in the amount of political contributions they can make to officials and candidates who can influence the award of municipal securities business. The maximum amount of contribution allowed per election is $20,000. This means that in each election, the MFP can only contribute up to $20,000 to officials or candidates.
The purpose of this rule is to prevent the potential for corruption or conflicts of interest in the municipal securities industry. By limiting the amount of contributions, the MSRB aims to create a level playing field for all dealers and prevent any undue influence in the award of municipal securities business.
It is also important to note that the $20,000 limit is per election, not per candidate. This means that if an MFP contributes $20,000 to one candidate, they cannot contribute any more to any other candidates in that same election. Furthermore, this limit applies to both primary and general elections.
In addition, the $20,000 limit is a cumulative limit, which means that it includes all contributions made by the MFP, whether it is made directly or through a political action committee (PAC). This rule also prohibits MFPs from soliciting or arranging contributions from others if they have already reached their limit.
To ensure compliance with this rule, MFPs are required to report their contributions to the MSRB on Form G-37. This form must be filed within 30 days after the end of each calendar quarter. Failure to comply with this rule can result in severe penalties, including the loss of their registration as an MFP.
In conclusion, the MSRB limits the political contributions made by MFPs to $20,000 per election. This rule aims to promote fairness and transparency in the municipal securities industry and prevent any potential conflicts of interest. MFPs must comply with this limit and report their contributions to the MSRB regularly to ensure compliance with this important rule.