Introduction to the Series 51 Exam
The financial services industry is governed by a complex web of regulations designed to protect investors and maintain market integrity. Among these regulations, the Municipal Securities Rulemaking Board (MSRB) plays a critical role in overseeing the municipal securities market. For professionals looking to step into a supervisory role specifically focused on municipal fund securities—such as 529 college savings plans and Local Government Investment Pools (LGIPs)—the Series 51 exam is the essential gateway.
Formally known as the Municipal Fund Securities Limited Principal Qualification Examination, the Series 51 is a specialized certification. It doesn’t just test your knowledge of the products themselves; it assesses your ability to supervise the activities of a municipal securities dealer regarding these specific funds. Whether you are aiming to enhance your firm’s compliance department or looking to advance your career into a management role, passing this exam is a non-negotiable requirement.
Navigating the technicalities of MSRB rules can be daunting, but with the right approach, it is entirely manageable. Here at Fraser Exam, we recommend starting your preparation at least 4 to 6 weeks in advance to ensure you have a firm grasp of the regulatory nuances that this exam demands.
Section 1: The Basics & Eligibility
What is the Series 51 and who is it for?
The Series 51 exam is designed to qualify an individual as a Municipal Fund Securities Limited Principal. This role is distinct from a general municipal securities principal because it is limited strictly to municipal fund securities. This includes 529 plans, which are tax-advantaged savings plans designed to encourage saving for future education costs, and LGIPs, which are trusts established by local governments to invest their collective funds.
This certification is for individuals who will be responsible for supervising the activities of municipal securities representatives. This includes overseeing the opening and maintenance of accounts, the sale of municipal fund securities, and the handling of customer complaints related to these products.
Prerequisites and Eligibility
The Series 51 is not an entry-level exam. To be eligible to take the Series 51, a candidate must already hold a general supervisory qualification. Specifically, you must have already passed one of the following exams:
- Series 24: General Securities Principal Examination
- Series 26: Investment Company/Variable Contracts Products Limited Principal Examination
Without one of these prerequisite certifications, you cannot be registered as a Series 51 principal. This ensures that candidates already have a foundational understanding of general supervisory principles before specializing in the municipal fund sector.
Exam Costs and Validity
As of the current fee schedule, the cost to sit for the Series 51 exam is $155. This fee is typically paid to FINRA through the firm’s CRD (Central Registration Depository) system. It is important to note that this fee covers only the exam itself; study materials and prep courses are additional costs.
Regarding international validity, the Series 51 is a U.S.-specific certification based on MSRB and SEC regulations. While the knowledge of fund structures may be useful abroad, the legal authority to supervise municipal fund securities is limited to the United States and its territories. There is no specific age limit beyond the requirement to be employed by a member firm, and while there is no lifetime limit on retakes, there are waiting periods for failed attempts.
| Exam Feature | Details |
|---|---|
| Official Name | Municipal Fund Securities Limited Principal Qualification Examination |
| Administering Body | MSRB (Administered by FINRA) |
| Prerequisites | Series 24 or Series 26 |
| Exam Cost | $155 |
| Number of Questions | 60 Scored (65 Total) |
Section 2: Exam Format & Style
Structure and Duration
The Series 51 is a computer-based examination. It consists of 60 multiple-choice questions that count toward your score. Additionally, there are 5 “pretest” questions randomly distributed throughout the exam that do not affect your score. These pretest questions are being evaluated for future use, but since you won’t know which ones they are, you must treat every question as if it counts.
Candidates are given 1 hour and 30 minutes (90 minutes) to complete the exam. This allows for an average of 1.38 minutes per question, which is generally sufficient for most candidates given that the questions are often straightforward applications of regulatory rules.
Scoring and Rules
The exam is closed-book. You are not permitted to bring any outside reference materials, notes, or electronic devices into the testing room. The testing center will provide you with scratch paper or a whiteboard and a basic calculator.
Scoring is based on the number of correct answers. There is no negative marking, meaning you are not penalized for incorrect guesses. It is always in your best interest to answer every question, even if you have to make an educated guess. The passing score for the Series 51 is 70%, which means you must answer at least 42 out of the 60 scored questions correctly.
Section 3: Difficulty & Passing Rates
How Hard is the Series 51?
In the hierarchy of financial exams, the Series 51 is considered “moderately difficult.” It is highly specialized, focusing almost exclusively on MSRB rules. For candidates who have already passed the Series 24 or 26, the supervisory concepts will feel familiar, but the specific application to 529 plans and LGIPs requires fresh study.
The historical passing rate is not publicly published by FINRA or the MSRB, but industry estimates suggest it is relatively high—often cited between 75% and 85%. This is likely because the candidate pool is already experienced and has proven their ability to pass rigorous supervisory exams like the Series 24.
Common Areas of Struggle
Candidates often struggle with the specific nuances of MSRB advertising rules (Rule G-21) and the political contribution rules (Rule G-37). The MSRB is particularly strict about “pay-to-play” scenarios, and the logic behind these rules can be intricate. Additionally, understanding the distinction between the roles of the primary distributor and the selling dealer in the context of 529 plans is a common tripwire.
| Content Domain | Percentage of Exam | Number of Questions |
|---|---|---|
| Regulatory Framework | 13% | 8 |
| General Supervision | 35% | 21 |
| Sales Supervision | 42% | 25 |
| Underwriting and Disclosure | 10% | 6 |
Section 4: Preparation Strategy
Study Recommendations
Because the Series 51 is so specialized, broad-based study materials for the Series 7 or Series 24 will not be enough. You need materials specifically tailored to the MSRB G-series rules. Most candidates find that 30 to 50 hours of dedicated study is the “sweet spot” for success. This should include reading the primary study manual and taking at least 5 to 7 full-length practice exams.
Many candidates who’ve used Fraser Exam resources report feeling more confident on exam day because they focused on the specific wording used in MSRB regulations. The MSRB often uses specific terminology (e.g., “Official Statement,” “Program Description,” “Underwriter”) that has very precise legal meanings.
Self-Study vs. Prep Courses
Can you self-study for the Series 51? Yes, especially if you are disciplined and have a strong background in compliance. However, because the exam is so focused on rules and interpretations, a prep course can help by highlighting the “must-know” items and explaining complex rules like G-37 in plain English.
When scheduling, you should aim to book your exam at a Prometric testing center as soon as you begin studying. This creates a deadline and helps maintain momentum. You can find registration details and schedule your session through the official FINRA Series 51 page.
| Timeline | Study Focus |
|---|---|
| Week 1 | Read the full study manual; focus on MSRB definitions. |
| Week 2 | Deep dive into Rule G-37 (Political Contributions) and G-21 (Advertising). |
| Week 3 | Focus on Sales Supervision and account maintenance rules. |
| Week 4 | Take 3-5 practice exams; review every incorrect answer. |
Section 5: Career & ROI
Job Roles and Opportunities
Passing the Series 51 opens doors to specific management and compliance roles within broker-dealers, banks, and investment firms that deal in municipal fund securities. Common job titles include:
- Municipal Fund Securities Principal
- Compliance Officer (Specializing in 529 plans)
- Supervisory Analyst
- Director of College Savings Plans
While the Series 51 itself might not trigger an immediate, massive salary jump like the Series 7 or 24, it is often a requirement for promotion into senior management within firms that specialize in the municipal market. In these roles, salaries can range from $120,000 to $200,000+, depending on the size of the firm and the level of responsibility.
Maintenance and Recognition
The Series 51 certification does not expire as long as you remain employed by a FINRA-member firm and keep your registration active. However, you are required to complete Continuing Education (CE) requirements. This involves both a Regulatory Element (administered by FINRA) and a Firm Element (provided by your employer) annually.
Top employers, including major investment banks and specialized municipal firms, recognize the Series 51 as a mark of specialized expertise. It demonstrates that you possess the technical knowledge to navigate the unique intersection of municipal law and investment company products.
Section 6: Exam Day Logistics
What to Bring
On the day of the exam, you must arrive at the Prometric testing center at least 30 minutes early. You are required to bring a valid, government-issued photo ID with a signature (such as a driver’s license or passport). Ensure that the name on your ID exactly matches the name on your exam registration.
The Testing Environment
The testing room is highly secure. You will be asked to store all personal belongings, including your watch, phone, and wallet, in a locker. You may be subject to a metal detector sweep. Once inside, you will be seated at a computer terminal. If you need a bathroom break, you are allowed to take one, but the exam clock will not stop. It is best to use the restroom before the exam begins.
Receiving Results
One of the best things about the Series 51 is that you will receive your results immediately. As soon as you submit the final question and complete a brief exit survey, your score will appear on the screen. You will also receive a printed score report from the test center staff before you leave. If you pass, your status will be updated in the CRD system within a few business days. If you fail, you must wait 30 days before your second or third attempt. If you fail a third time, the waiting period increases to six months.
Comprehensive FAQ Section
Is online/remote proctoring available for this exam?
Generally, FINRA and the MSRB require the Series 51 to be taken at an authorized Prometric testing center. While remote proctoring was expanded during the COVID-19 pandemic, it is currently reserved for specific hardship cases or limited circumstances. Most candidates should plan to visit a physical testing site.
What is the cost of the exam, and are there hidden fees?
The exam fee is $155. However, your firm may also incur fees for the initial U4 filing or fingerprinting. If you need to reschedule your exam within 10 business days of your appointment, Prometric may charge a rescheduling fee.
How do I schedule my exam date?
Once your firm has filed your Form U4 and paid the fee, an “enrollment window” (usually 120 days) opens. During this window, you can go to the Prometric website to select a date, time, and location that works for you.
What is the cancellation or rescheduling policy?
You can reschedule or cancel without penalty if you do so more than 10 business days in advance. If you cancel within 3 to 10 business days, you will likely pay a fee. If you cancel within 2 business days or fail to show up, you will forfeit the entire exam fee.
Is there an expiration date on my enrollment?
Yes. Once your firm opens an exam window for you, it typically remains open for 120 days. If you do not take the exam within this timeframe, the enrollment expires, and the fee is forfeited.
What forms of identification do I need to bring?
You need one valid, unexpired, government-issued photo ID that includes a signature. A driver’s license, passport, or military ID are the most common forms accepted.
Am I allowed to bring a calculator?
No, you cannot bring your own calculator. The testing center will provide you with a basic four-function calculator, or there will be a digital calculator built into the exam software.
Are bathroom breaks allowed during the exam?
Yes, you can take a break, but the timer continues to run. You will also have to go through security re-entry procedures (like a palm scan or metal detector) when you return to the room.
What items are strictly prohibited in the testing room?
Prohibited items include cell phones, smartwatches, tablets, notes, books, food, drinks, and even certain types of jewelry. Everything must be kept in the provided locker.
How early should I arrive at the testing center?
You should arrive at least 30 minutes before your scheduled start time. This allows enough time for the check-in process and security screening.
What is the passing score?
The passing score is 70%. Out of the 60 scored questions, you must get at least 42 correct.
How many hours should I study?
Most successful candidates spend between 30 and 50 hours studying. This varies based on your existing knowledge of MSRB rules and your experience with 529 plans.
Does the exam change every year?
The MSRB updates the exam periodically to reflect changes in rules and regulations. While the core structure remains the same, the specific questions are updated to ensure they remain relevant to the current regulatory environment.
Do I get my results immediately?
Yes. Your score will be displayed on the screen immediately after you finish the exam, and you will receive a printed copy of your results before leaving the center.
If I fail, how soon can I retake the exam?
There is a 30-day waiting period after your first and second failed attempts. After a third failure, you must wait 180 days (six months) before you can attempt the exam again.
Conclusion
The Series 51 exam is a vital milestone for any financial professional looking to specialize in the supervision of municipal fund securities. While the scope of the exam is narrow, the depth of regulatory knowledge required is significant. By mastering the MSRB rules and understanding the unique characteristics of 529 plans and LGIPs, you position yourself as a key asset to your firm’s compliance and management teams.
Preparation is the ultimate key to success. Our team at Fraser Exam has compiled the most effective strategies to help you navigate this exam with confidence. By combining a disciplined study schedule with high-quality practice materials, you can ensure that you are ready to pass on your first attempt. For more information on exam registration and rules, you can always visit the official MSRB website.
Success on the Series 51 is not just about memorizing rules; it’s about understanding the “why” behind the regulations to better protect investors and the integrity of the municipal market. Good luck with your studies, and we look forward to seeing you advance in your professional journey!