Regulatory FrameworkQuestion 384 of 398
Which statement about the relationship between FINRA and the SEC is most accurate?
a.FINRA is a government agency that supervises the SEC
b.FINRA and the SEC are independent with no oversight relationship
c.FINRA is a self-regulatory organization whose rules and disciplinary actions are subject to SEC oversight
d.The SEC enforces FINRA rules directly against individual representatives
Explanation
FINRA is a non-governmental self-regulatory organization registered with and overseen by the SEC. FINRA proposes rules that require SEC approval, and its disciplinary decisions can be appealed to the SEC. The SEC retains ultimate statutory authority over the securities markets.
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