A regulatory compliance team is reviewing the statutory scope and legal jurisdiction of the Municipal Securities Rulemaking Board (MSRB). Which of the following statements correctly describe the authority and limitations of the MSRB? Select all that apply.
- The MSRB formulates rules governing the professional conduct and business operations of broker-dealers, municipal securities dealers, and municipal advisors.Cevap
- BThe MSRB maintains an active examination division to directly inspect member firms and impose disciplinary fines for rule violations.
- The MSRB is statutorily prohibited from regulating municipal bond issuers or requiring them to submit disclosure documentation prior to issuing securities.Cevap
- DMSRB rules applicable to bank municipal securities dealers are inspected and enforced exclusively by FINRA.
Cevap
The correct statements state that the MSRB creates rules for municipal dealers, broker-dealers, and municipal advisors, and that the MSRB is prohibited from regulating municipal issuers directly.
The MSRB writes rules for municipal securities dealers, broker-dealers, and municipal advisors, but lacks authority over municipal bond issuers. Furthermore, the MSRB has no direct enforcement mechanism or examination staff.
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MSRB Rulemaking Jurisdiction and Enforcement Architecture