Self-Regulatory Organizations (SROs)
Chapters in this video
- 0:00 The corporate command chain and who fires Riley
- 1:35 What an SRO is and where its power comes from
- 2:47 The four major SROs and their jurisdictions
- 3:28 FINRA's 2007 birth from NASD and NYSE merger
- 4:09 FINRA's five HR powers and enforcement teeth
- 5:09 MSRB as mall cop: rulemaking without enforcement
- 6:24 Who enforces MSRB rules for each entity type
- 6:56 Rapid-fire exam recap
What this video covers
- What defines a self-regulatory organization (SRO), why it is non-governmental, and why the SEC is the sole source of its delegated authority
- The four major SROs you must recognize: FINRA, MSRB, CBOE, and NYSE, plus what each specifically regulates
- FINRA's 2007 creation from the NASD and NYSE regulatory merger, and why 1934 is the trap answer
- All five of FINRA's key functions: administering qualification exams, licensing individuals, admitting firms, writing rules, and enforcing them
- FINRA's specific enforcement tools: fines, suspensions, permanent bars, and expulsion of member firms
- The MSRB's scope over municipal securities dealers and municipal advisors, plus its three key rule areas (primary offering practices, official statement disclosure, and CUSIP requirements)
- Who enforces MSRB rules for each entity type: FINRA for broker-dealers, the SEC for municipal advisors, and federal banking regulators for banks
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