ExplanationIntermediate
What information must a municipal securities dealer inquire about to determine a customer's suitability according to MSRB rules?
According to MSRB rules, a municipal securities dealer must inquire about a customer's investment objectives, tax bracket or tax status, financial background, state of residence, and the structure of the customer's existing portfolio to determine suitability.
Key points
- Dealers must assess investment objectives and tax status.
- Financial background and state of residence are also important.
- The structure of the customer's existing portfolio should be evaluated.
- Investment experience is not required to be questioned, but may be asked by some firms.
Source:Boston Institute of Finance Stockbroker Course: Series 7 and Series 63 Test Preparation· Investment Banking· p. 104–111
Related questions
Boston Institute of Finance Stockbroker Course: Series 7 and Series 63 Test Preparation
Boston Institute of Finance
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