Examkin

Soru

Zorluk: OrtaRegulatory Entities and Self-Regulatory Organizations (SROs)

A retail investor purchasing municipal bonds asks her financial advisor about how municipal market participants are regulated. The advisor explains that a specific self-regulatory organization (SRO) creates rules governing municipal securities dealers and municipal advisors, but relies entirely on other regulatory agencies to examine firms and enforce its regulations. Which regulatory entity writes rules for the municipal market but has no statutory authority to enforce them?

  1. The Municipal Securities Rulemaking Board (MSRB)Cevap
  2. B
    The Financial Industry Regulatory Authority (FINRA)
  3. C
    The Securities and Exchange Commission (SEC)
  4. D
    The Depository Trust & Clearing Corporation (DTCC)

Cevap

The Municipal Securities Rulemaking Board (MSRB) is the entity that creates rules for municipal market participants but lacks statutory enforcement and examination powers.
The correct answer is the Municipal Securities Rulemaking Board (MSRB). The MSRB is an SRO established by Congress to create rules governing the municipal securities industry. However, the MSRB does not have inspection or enforcement authority. Instead, its rules are enforced by FINRA for broker-dealers and by federal bank regulators (e.g., OCC, Fed, FDIC) for municipal bank dealers.

Adım Adım Çözüm

1
Identify the statutory authority of the Municipal Securities Rulemaking Board (MSRB).
The MSRB writes rules protecting investors, municipal entities, and the public interest in the municipal securities market.
Congress established the MSRB under the Securities Acts Amendments of 1975 to promulgate rules governing municipal securities transactions.
2
Determine how MSRB rules are enforced in the financial industry.
Enforcement of MSRB rules is delegated to FINRA and federal bank regulatory agencies (such as the FDIC, FRB, and OCC) for bank dealers.
The MSRB has no statutory authority to conduct compliance examinations or discipline municipal broker-dealers or municipal advisors for rule violations.

Anahtar Kavram

MSRB Rulemaking vs. Enforcement Authority
Tahmini Süre:1m 15s
Bu soruyu puanla

Konular

Regulatory Entities and Self-Regulatory Organizations (SROs)

Bu konudan daha fazla soru