SIE: Regulations (FINRA Rules) Questions With Complete SOLUTION
What is the U.S. Government agency that has enforcement authority over the U.S. securities markets? correct answer: SEC Both FINRA and the Securities and Exchange Commission (SEC) regulate and have enforcement capability over the U.S. securities markets and market participants. However, the SEC is a government agency, while FINRA is an SRO - a self-regulatory organization under SEC oversight. The Municipal Securities Rulemaking Board is another SRO that creates rules for municipal market participants, but has no enforcement ability - enforcement of MSRB rules is performed by FINRA. The CFTC regulates futures and commodities. Which of the following is an SRO? correct answer: MSRB Both FINRA and the MSRB are SROs - self-regulatory organizations under SEC oversight. The MSRB write rules for municipal market participants, but it does not enforce those rules. Enforcement of MSRB rules is performed by FINRA for broker-dealers. SIPC is the Securities Investor Protection Corporation, which insures customer accounts at broker-dealers from B/D failure.
Written for
- Institution
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Husson University
- Course
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SIE (SIE)
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- Uploaded on
- June 17, 2023
- Number of pages
- 43
- Written in
- 2022/2023
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- Exam (elaborations)
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- Questions & answers
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sie regulations finra rules questions with comp
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