Examkin

Soru

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

A retail investor asks a compliance officer to clarify how municipal securities rules are administered across different regulatory agencies. Which entity is responsible for examining non-bank broker-dealers and enforcing compliance with the rules established by the Municipal Securities Rulemaking Board (MSRB)?

  1. The Financial Industry Regulatory Authority (FINRA)Cevap
  2. B
    The Municipal Securities Rulemaking Board (MSRB)
  3. C
    State Securities Administrators (under Blue Sky Laws)
  4. D
    The Federal Reserve Board (FRB)

Cevap

The Financial Industry Regulatory Authority (FINRA) examines non-bank broker-dealers and enforces compliance with rules created by the Municipal Securities Rulemaking Board (MSRB).
Although the Municipal Securities Rulemaking Board creates rules governing municipal securities activities, it lacks statutory authority to inspect member firms or enforce compliance. For non-bank broker-dealers, examination and enforcement responsibilities are carried out by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).

Adım Adım Çözüm

1
Identify the statutory scope of the Municipal Securities Rulemaking Board (MSRB).
The MSRB formulates rules regarding municipal securities trading, underwriting, and advisory activities, but it lacks policing and enforcement mechanisms.
Congress established the MSRB as an SRO authorized strictly for rulemaking.
2
Determine which body enforces MSRB rules for non-bank broker-dealers.
FINRA (along with the SEC) conducts examinations and enforces MSRB rules for securities firms, while federal bank regulators inspect municipal bank dealers.
MSRB regulations must be carried out by designated regulatory entities with enforcement jurisdiction.

Anahtar Kavram

MSRB Rulemaking vs. Enforcement Authority
Bu soruyu puanla

Konular

Regulatory Entities and Self-Regulatory Organizations (SROs)

Bu konudan daha fazla soru