During the first 90 days, this person may do all of the following EXCEPT:

• A. Soliciting orders from other municipal broker-dealers
• B. Earn commissions
• C. Earn salary
• D. Record transactions on the books and records

Answer: (B)

This item tests how a new municipal securities professional is allowed to be compensated and what activities they may perform during the initial 90 days with a broker-dealer.

During these first 90 days, the person can be paid a salary and may perform routine, non-selling duties such as recording transactions on the books and records. They may also engage in certain limited activities that don’t involve selling or generating commissions. However, earning commissions is not permitted in this initial period because commission-based compensation creates an incentive to engage in selling activities before proper registration, training, and supervisory oversight are in place.

So, the correct understanding is that salary-based compensation is allowed, clerical/record-keeping work is allowed, and limited inter-dealer activity may occur under supervision, but compensation tied to sales (commissions) is not allowed during the first 90 days.