All of the following statements are true regarding municipal advertising EXCEPT: A all municipal advertising must be approved by either the Municipal Principal or General Principal prior to use B copies of municipal advertising must be filed in advance of first use with the Municipal Securities Rulemaking Board C copies of municipal advertising must be retained by the member for 3 years D Official Statements are exempted from the advertising rules

• A. A
• B. B
• C. C
• D. D

Answer: (B)

Advertising of municipal securities is governed by rules that emphasize proper supervision, accuracy, and recordkeeping. Before any municipal advertisement is used, it must be approved by a supervisor designated by the firm, typically the Municipal Principal or General Principal, to help ensure the content is not misleading and complies with fair-dealing standards. Copies of every advertisement must be retained by the member for three years from first use, with the first two years readily accessible for inspection.

Official Statements are exempt from the advertising rules, so they aren’t treated as advertising content under those rules. However, there isn’t a requirement to file copies of municipal advertising with the MSRB before first use; the pre-use filing requirement does not apply.