FINRA'S CONTENT OUTLINE REQUIRES KNOWLEDGE OF MUNICIPAL FUND SECURITIES, SO BE PREPARED!

How many candidates walking in to take the Securities Industry Essentials exam have never heard about municipal fund securities? I bet a lot. Why? Because many SIE study guides make no mention of them.

FINRA's Content Outline clearly indicates that FINRA considers knowledge of municipal fund securities to be required for the SIE exam. See 2.1.5 of FINRA's Content Outline.

For example, what are the three types of municipal fund securities?

Answer: the three types are local government investment pools, 529 programs, and Able accounts.

Question: what is the purpose of Able accounts?

Bob Eder has a full description of municipal fund securities, including Able accounts, on pages 119 to 124 in his Study for the Securities Industry Essentials Exam. Here is Bob Eder's description of Able accounts:

"ABLE Programs (2.1.5)

"Can states or their agencies establish tax-advantaged programs to help disabled individuals maintain their health and independence? Yes! Monies put into an ABLE Program purchase units of a trust created and maintained by a state, and are invested according to the particular investment objectives of the trust. Units of these trusts are considered to be municipal securities by the SEC. The MSRB considers them to be municipal fund securities. IRS considers that investments in an ABLE trust grow tax-free, and distributions to a disabled individual are tax-free if expended for legitimate medical expenses for the person's disabilities."

Here is the link to FINRA's Content Outline for the SIE exam. See the references to municipal fund securities in FINRA's Content Outline, section 2.1.5.

Study for the Securities Industry Essentials (SIE) Exam is available from Amazon in both paperback and Kindle e-book versions. 

See Bob Eder's Author Page on Amazon.com.

For questions about Bob Eder's SIE manual, Study for the Securities Industry Essentials (SIE) Exam, or questions in general about the SIE exam, such as mutual fund securities or Able accounts, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. 

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