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Zorluk: KolaySelf-Regulatory Organizations (SROs) and FINRA

Which of the following actions falls directly within the authority of FINRA when regulating its member firms and registered representatives?

  1. Imposing fines and suspending registered representatives who violate industry ethical standardsCevap
  2. B
    Filing criminal charges and sentencing individuals convicted of securities fraud to prison terms
  3. C
    Regulating commercial bank deposit insurance policies and consumer lending interest rate caps
  4. D
    Trading as a principal dealer to guarantee minimum investment returns for retail brokerage clients

Cevap

Imposing fines and suspending registered representatives who violate industry ethical standards
As a self-regulatory organization (SRO), FINRA has the authority to monitor member firm compliance and discipline registered representatives through fines, sanctions, censures, or suspensions from associating with FINRA member firms.

Adım Adım Çözüm

1
Identify the legal status and primary mandate of FINRA.
FINRA is a self-regulatory organization (SRO) authorized to oversee broker-dealers and their registered representatives.
SROs establish and enforce business conduct rules to protect investors and maintain market integrity.
2
Distinguish SRO disciplinary powers from governmental and commercial activities.
FINRA can levy civil fines, issue censures, and suspend or bar individuals from the securities industry, but cannot file criminal charges, regulate commercial banking, or execute trades.
Criminal prosecution is reserved for governmental authorities like the Department of Justice, whereas commercial banking regulation falls under agencies such as the FDIC or Federal Reserve.

Anahtar Kavram

FINRA Disciplinary Authority and SRO Jurisdiction
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Konular

Self-Regulatory Organizations (SROs) and FINRA

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