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Question

Difficulty: EasyGifts, Gratuities, Political Contributions, and Outside Business Activities

A municipal finance professional (MFP) intends to make a personal campaign contribution to a local candidate running for mayor in the city where the MFP resides and is eligible to vote. Under MSRB Rule G-37, what is the maximum political contribution the MFP may make per election to this candidate without triggering a two-year ban on negotiated municipal securities business with that issuer?

  1. $250Answer
  2. B
    $100
  3. C
    $500
  4. D
    An unlimited amount, provided written notice is submitted to the member firm prior to contributing

Answer

$250 per election to a candidate for whom the MFP is entitled to vote.
Under MSRB Rule G-37, a Municipal Finance Professional (MFP) can contribute up to $250 per election to an official or candidate for whom the MFP is eligible to vote. Contributions within this de minimis allowance do not trigger the automatic two-year ban on negotiated municipal securities business.

Step-by-Step Solution

1
Identify the governing rule and professional role
MSRB Rule G-37 governs political contributions made by Municipal Finance Professionals (MFPs).
Rule G-37 prevents 'pay-to-play' practices in the municipal securities market.
2
Check the voting eligibility exception criteria
The MFP is eligible to vote for the candidate in their home district.
The de minimis exemption applies strictly when the contributor is entitled to vote for the official.
3
Apply the statutory de minimis contribution cap
The allowable limit is $250 per election (primary and general elections counted separately).
Contributions exceeding $250, or contributions made to candidates the MFP cannot vote for, result in a 2-year prohibition on negotiated municipal securities business.

Key Concept

MSRB Rule G-37 De Minimis Exception for Political Contributions
Estimated Time:45s
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Topics

Gifts, Gratuities, Political Contributions, and Outside Business Activities