Uniform Application for Municipal Securities Principal or Municipal Securities Representative Associated with a Bank Municipal Securities Dealer
Financial institutions submit the interagency MSD-4 and MSD-5 forms for the employees in their municipal securities dealer departments. The FR MSD-4 is the source document for initial information submitted to each regulatory agency; it collects information, such as personal history and professional qualifications, on an employee whom the bank wishes to assume the duties of a municipal securities principal or representative. The FR MSD-5 is the source document for updating the information when an associated person's employment is terminated for any reason; it collects the date of, and reason for, termination of such an employee.
Purpose: Information collected on the FR MSD-4 and FR MSD-5 is used to refer information indicating a potential violation of law to another government agency or self-regulating organization (SRO) such as the Municipal Securities Rulemaking Board (MSRB); to aid in the resolution of any proceeding in which the federal securities laws or banking laws are at issue; to obtain additional information from a government agency or SRO about the applicant's qualifications; or to respond to a government agency or SRO request for information needed to issue a license, or for a similar action affecting the applicant.
Pursuant to the Securities Acts Amendments of 1975, the Congress imposed a comprehensive federal regulatory structure on the municipal securities industry. A new rulemaking body, the MSRB, was created to prescribe rules with respect to transactions in municipal securities; its rules take effect only after approval by the Securities and Exchange Commission (SEC). The Federal Reserve enforces compliance by state member banks and bank holding companies and examines the municipal securities dealer activities of foreign dealer banks.
State member banks, bank holding companies, and foreign dealer banks. Reporting is required.
The FR MSD-4 must be filed before a person may be associated with a municipal securities dealer.
Last Update: October 10, 2019