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Zorluk: KolayMunicipal Securities Rulemaking Board (MSRB) Rules and Scope

During a routine compliance audit of a registered broker-dealer's municipal trading desk, regulatory examiners identify a potential violation of MSRB fair pricing rules. Which of the following entities has the authority to inspect the broker-dealer and enforce compliance with these MSRB rules?

  1. The Financial Industry Regulatory Authority (FINRA)Cevap
  2. B
    The Municipal Securities Rulemaking Board (MSRB)
  3. C
    The issuer of the municipal securities being traded
  4. D
    The Internal Revenue Service (IRS)

Cevap

The Financial Industry Regulatory Authority (FINRA)
The Municipal Securities Rulemaking Board (MSRB) creates rules to regulate the municipal securities market, but it lacks statutory authority to conduct compliance examinations or enforce its regulations. For registered broker-dealers, examination and enforcement of MSRB rules are carried out by FINRA and the SEC (or federal banking regulators for bank dealers).

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1
Identify the rulemaking role of the Municipal Securities Rulemaking Board (MSRB).
The MSRB writes rules governing municipal securities dealers, broker-dealers, and municipal advisors.
Understanding SRO functional boundaries.
2
Determine which regulatory entity performs compliance examinations and enforces MSRB rules for broker-dealers.
Because the MSRB has no direct enforcement or examination power, enforcement for registered broker-dealers is delegated to FINRA and the SEC.
MSRB rule enforcement relies entirely on external regulatory agencies.

Anahtar Kavram

MSRB Rulemaking vs. Enforcement Authority
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Konular

Municipal Securities Rulemaking Board (MSRB) Rules and Scope

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