General Securities Sales Supervisor (Series10) Practice Exam

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What is required to be reported on Form G-37 regarding political contributions by a municipal securities broker-dealer?

Only contributions over $500
Any contribution to any campaign
Contributions over $250 to an elected official's campaign
Contributions made for local community initiatives

The correct answer is: Contributions over $250 to an elected official's campaign

Form G-37 requires municipal securities broker-dealers to report contributions made to the campaign of an elected official who is in a position to influence the awarding of municipal securities business. The threshold for disclosure on this form is set at contributions that exceed $250. By reporting these contributions, the intent is to ensure transparency and to prevent corruption or the appearance of impropriety in the municipal securities market. This requirement focuses on contributions specifically made to elected officials, as these individuals may have the authority to allocate municipal securities business to various broker-dealers. Transparency in the reporting of these contributions helps maintain the integrity of the municipal securities market and assures that business is awarded based on merit rather than political connections. Contributions under $250 do not trigger this reporting requirement, and this makes the specified threshold important for compliance. Therefore, contributions made for local community initiatives and any broader contributions to campaigns that exceed the defined threshold would not meet the necessary criteria for reporting on Form G-37.