Which organization independently regulates securities firms?

Which organization independently regulates securities firms?

• A. Financial Industry Regulatory Authority (FINRA)
• B. Federal Reserve System (Fed)
• C. Securities and Exchange Commission (SEC)
• D. Commodity Futures Trading Commission (CFTC)

Answer: (A)

Independently regulate securities firms is best fulfilled by FINRA. FINRA is a self-regulatory organization that oversees broker-dealers and their registered representatives, establishing rules, conducting examinations, and enforcing compliance. It operates independently of the government, funded by member firms and fines, with its activities overseen by the Securities and Exchange Commission. In contrast, the Federal Reserve System governs banks and monetary policy, the SEC is the federal regulator of securities markets (not an independent SRO), and the CFTC covers futures and commodity markets. So FINRA uniquely fits the idea of an independent regulator of securities firms.

Independently regulate securities firms is best fulfilled by FINRA. FINRA is a self-regulatory organization that oversees broker-dealers and their registered representatives, establishing rules, conducting examinations, and enforcing compliance. It operates independently of the government, funded by member firms and fines, with its activities overseen by the Securities and Exchange Commission. In contrast, the Federal Reserve System governs banks and monetary policy, the SEC is the federal regulator of securities markets (not an independent SRO), and the CFTC covers futures and commodity markets. So FINRA uniquely fits the idea of an independent regulator of securities firms.