FINRA establishes distinct codes and rules to govern different aspects of securities industry operations, member behavior, and dispute resolution. Match each FINRA code or rule set on the left with its primary regulatory function on the right.
- Code of Procedure (COP)Governs formal disciplinary proceedings and enforcement sanctions against member firms and associated persons for regulatory violations.
- Code of ArbitrationProvides a binding dispute resolution mechanism to resolve monetary claims involving customers, broker-dealers, and associated persons.
- Uniform Practice Code (UPC)Establishes technical standards for trade processing, settlement procedures, ex-dates, and corporate actions between member firms.
- Conduct RulesSets ethical guidelines and fair dealing standards for customer communications, recommendations, and business conduct.
Cevap
The Code of Procedure matches with formal disciplinary proceedings; the Code of Arbitration matches with binding monetary dispute resolution; the Uniform Practice Code matches with technical trade settlement standards; and the Conduct Rules match with ethical customer interaction standards.
Each FINRA rule framework addresses a specific area of industry oversight: the Code of Procedure handles enforcement and disciplinary proceedings; the Code of Arbitration resolves monetary claims; the Uniform Practice Code standardizes technical inter-dealer operations and settlement; and the Conduct Rules set ethical standards for dealing with the public.
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Anahtar Kavram
FINRA Four Core Rule Sets: Code of Procedure, Code of Arbitration, Uniform Practice Code, and Conduct Rules
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