SIE Exam Question 18: Answer and Explanation

Question: 18

__________ has the power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies as well as SROs.

• A. NASD
• B. FINRA
• C. SEC
• D. MSRB

Correct Answer: C

Explanation:

The SEC has the power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies as well as SROs. The National Association of Securities Dealers (NASD), which existed from 1939 to 2007, oversaw the securities industry prior to the formation of FINRA. The Municipal Securities Rulemaking Board (MSRB) protects investors, issuers, and public pension plans by promoting a fair and efficient municipal market. The non-governmental agency known as FINRA (Financial Industry Regulatory Authority) governs registered agents and firms in the United States.