Which regulator independently regulates securities firms?

Which regulator independently regulates securities firms?

• A. Financial Industry Regulatory Authority (FINRA)
• B. Federal Reserve System (Fed)
• C. Securities and Exchange Commission (SEC)
• D. Office of the Comptroller of the Currency (OCC)

Answer: (A)

Broker-dealer supervision is handled by an independent self-regulatory organization that writes rules, conducts examinations, and enforces disciplinary actions for member firms. This organization operates independently of the government but under the oversight of the SEC. That combination—independence in daily oversight with SEC supervision—defines its role in regulating securities firms. The Federal Reserve and the OCC focus on banks and monetary policy, not broker-dealers, while the SEC oversees the markets as a whole and can take enforcement actions, but the ongoing, day-to-day regulation of securities firms is carried out by the independent SRO. So the best answer is FINRA.

Broker-dealer supervision is handled by an independent self-regulatory organization that writes rules, conducts examinations, and enforces disciplinary actions for member firms. This organization operates independently of the government but under the oversight of the SEC. That combination—independence in daily oversight with SEC supervision—defines its role in regulating securities firms. The Federal Reserve and the OCC focus on banks and monetary policy, not broker-dealers, while the SEC oversees the markets as a whole and can take enforcement actions, but the ongoing, day-to-day regulation of securities firms is carried out by the independent SRO. So the best answer is FINRA.