Regulatory FrameworkQuestion 389 of 398
Which of the following is generally NOT within FINRA's direct regulatory jurisdiction?
a.The conduct of a broker-dealer's registered representatives
b.Sales practices of member firms
c.Advertising and communications with the public by members
d.The rulemaking authority over the U.S. futures markets
Explanation
FINRA regulates broker-dealers and their associated persons, including sales practices and communications with the public. The U.S. futures markets are regulated by the CFTC and the National Futures Association, not FINRA. Understanding which regulator governs which market is a core SIE concept.
Law Reference: FINRA RulesPractice all 398 questions free — no signup required.
Related questions on this topic
- A newly hired individual will supervise the firm's general securities sales activities and approve new accounts. To act as a supervisor, this person must typically qualify as a:
- A registered representative gives a client four tickets to a concert worth $80 total as a thank-you related to their business relationship. Under the FINRA gift rule, this gift is:
- How does the Form U5 filed by a departing representative's firm affect the individual's ability to move to a new member firm?
- A registered person fails to complete their required Regulatory Element continuing education by the applicable deadline. What is the typical consequence?
- The Central Registration Depository (CRD) system, operated by FINRA, primarily serves to:
- A representative wants to participate in a private securities transaction on behalf of a customer and will NOT receive any selling compensation. Under FINRA rules, the representative must at minimum:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against FINRA Securities Industry Essentials (SIE) Exam · How we review