Question

A registered representative works in the municipal finance department of a municipal securities firm in a large city and is defined as a Municipal Finance Professional (MFP). The firm recently completed a $100 million underwriting for the city and the firm is hosting a dinner to celebrate the closing of the deal. The event is expected to cost $300 per person, including the cost of a cocktail reception, dinner, and the cost transporting the group to and from the venue where the event is being held. The representative wishes to invite one of the town officials with whom he worked on the underwriting to the event. Which statement is TRUE about doing this?A. Taking this individual to dinner violates the MSRB $100 gift limit

B. Taking this individual to dinner is a violation because the $300 value exceeds the MSRB Political Contribution rule limit
C. Taking this individual to dinner is permitted because this is business entertainment
D. This individual cannot be taken to dinner because it is a conflict of interest

Answer 1

C: Taking this individual to dinner is permitted because this is business entertainment

Step-by-step explanation:

Had it been before the completion of underwriting that representative invited the town official, then it could lead to a conflict of interest. But the project is already complete and it seems purely a business entertainment, so there is no big deal in inviting the town official to the event to celebrate success.