Federal law requires that all municipal advisor professionals pass the Municipal Securities Rulemaking Board’s (MSRB) Municipal Advisor Representative Qualification Examination – the Series 50 Exam – to engage in municipal advisory activities. The definition of “municipal advisor professionals” includes rate consultants and financial feasibility consultants, and GovRates considers that the legal requirements apply to some of the services we offer. After September 12, 2017, only municipal advisor professionals who have passed the Series 50 Exam can legally provide municipal advisory services as defined by Federal law and as regulated by the MSRB.
The purpose of the law is to help ensure that municipal advisory professionals have a baseline competency to provide financial advice to municipalities. All GovRates project managers have passed the Series 50 Exam and are fully qualified to legally provide financial advice to our clients. The following services can only be provided legally by a rate consultant or financial feasibility consultant that is a Series 50-Qualified Municipal Advisor Representative:
Evaluating available financing options and providing advice / recommendations on the structure, timing, and terms of such options.
Providing advice on whether certain rates and revenues would support debt service and meet coverage requirements on an available financing option.
Performing cash flow modeling in support of a financing option.
Serving as a financial feasibility consultant for a bond issue.
Providing financing advice / recommendations to an independent registered financial advisor if the need arises (i.e., indirect advice).