General Securities Sales Supervisor (Series 10) Practice Exam 2026 - Free Series 10 Practice Questions and Study Guide

The $100 gift limit in MSRB Rule G-20 applies specifically to municipal representatives. This rule is designed to prevent conflicts of interest and maintain ethical standards in the municipal securities industry by restricting the value of gifts that municipal representatives can give or receive in connection with their duties.

By applying this limit only to municipal representatives, the rule ensures that those who work directly with municipal securities—such as underwriters, dealers, and analysts—are held to a strict standard of integrity and transparency. This helps promote fair dealings and protects the interests of investors in the municipal securities market.

In contrast, while financial representatives and registered representatives may have their own regulatory guidelines regarding gifts, they are not specifically governed by the provisions outlined in MSRB Rule G-20. Municipal bond issuers do not fall under this rule either, as they are typically the entities issuing the bonds rather than the representatives facilitating transactions. The focus on municipal representatives underscores the importance of maintaining a level playing field in the municipal securities sector.