A registered representative at a municipal securities firm receives a written complaint regarding a purchase of municipal bonds. The registered representative should:

• A. Attempt to resolve the complaint prior to taking any other action
• B. Notify the municipal securities principal prior to taking any action to resolve the complaint
• C. Notify the Municipal Securities Rulemaking Board prior to taking any action to resolve the complaint
• D. Notify the Securities and Exchange Commission prior to taking any action to resolve the complaint

Answer: (C)

Handling written complaints about municipal securities involves regulatory reporting to the MSRB. When a customer submits a written complaint about a municipal-bond purchase, the firm must involve the regulator by notifying the MSRB before taking steps to resolve the complaint. This ensures regulatory oversight and consistent handling of complaints across firms, helping identify patterns of potential issues and protect investors. The internal supervisor should still be involved in resolving the matter, but the formal requirement is to inform the MSRB first. In contrast, involving the SEC is not the standard immediate step for a routine customer complaint, and while internal procedures with a principal are important, the key regulatory action here is notifying the MSRB.