Which items must be approved or reviewed by the municipal principal?

• A. I, II, III, IV
• B. I only
• C. I and II
• D. II and III

Answer: (A)

The key idea is that a municipal securities principal oversees compliance and accuracy across the firm’s critical activities, so items that could affect client understanding or the integrity of the market must be reviewed or approved before use or dissemination. In practice, this means advertising and sales literature, client communications, new account forms, trade and order documentation, and other materials or actions that represent the firm to customers should come under the principal’s review. If every item listed falls into these supervisory categories, then all of them must be approved or reviewed. That’s why selecting that all items are subject to the principal’s approval is the best choice.