SIE Exam (Regulatory Entities, Agencies)

State Regulators

-oversee investment advisers who manage less than $100 million. -enforces what are known as "blue sky" laws. These laws cover many of the same activities the SEC regulates

MSRB (Municipal Securities Rule-making Board)

A regulating body that creates rules and policies for investment firms and banks in the issuing and sale of municipal bonds, notes and other municipal securities by states, cities and counties. Activities regulated by the MSRB include the underwriting, trading and selling of municipal securities financing public projects. The MSRB was established by the United States Congress in 1975. Like the New York Stock Exchange or the National Association of Securities Dealers, the MSRB is a self-regulatory organization that is subject to supervision by the Securities and Exchange Commission (SEC).

CBOE

Chicago Board Options Exchange. The CBOE is the premier U.S. options market trading all options except foreign currencies which are traded in Philadelphia.

Department of Treasury

Collects, borrows, spends, and prints money

SEC Authority -Corporate Reporting:

Companies with more than $10 million in assets whose securities are held by more than 500 owners must file annual and other periodic reports. These reports are available to the public through the SEC's EDGAR database

FINRA

Created in July 2007 through the consolidation of NASD and the member regulation, enforcement and arbitration functions of the New York Stock Exchange, FINRA is the largest non-governmental regulator for all securities firms doing business in the United States.

SEC Authority-: Registration of Exchanges, Associations, and Others

The Act requires a variety of market participants to register with the Commission, including exchanges, brokers and dealers, transfer agents, and clearing agencies. Registration for these organizations involves filing disclosure documents that are updated on a regular basis. (e.g. 10-K, 10-Q)

SEC Authority -: Proxy Solicitations

The Securities Exchange Act also governs the disclosure in materials used to solicit shareholders' votes in annual or special meetings held for the election of directors and the approval of other corporate action. This information, contained in proxy materials, must be filed with the Commission in advance of any solicitation to ensure compliance with the disclosure rules. Solicitations, whether by management or shareholder groups, must disclose all important facts concerning the issues on which holders are asked to vote.

SEC Authority -: Tender Offers

The Securities Exchange Act requires disclosure of important information by anyone seeking to acquire more than 5 percent of a company's securities by direct purchase or tender offer. Such an offer often is extended in an effort to gain control of the company. As with the proxy rules, this allows shareholders to make informed decisions on these critical corporate events.

Federal Reserve System

The central banking system of the United States; responsible for regulating banks and implementing monetary policy

SEC Authority -: Insider Trading

The securities laws broadly prohibit fraudulent activities of any kind in connection with the offer, purchase, or sale of securities. These provisions are the basis for many types of disciplinary actions, including actions against fraudulent insider trading. Insider trading is illegal when a person trades a security while in possession of material nonpublic information in violation of a duty to withhold the information or refrain from trading.

IRS (Internal Revenue Service)

US government agency that is responsible for the collection and enforcement of taxes

SEC (Definition)

an independent federal government regulatory agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation.

SRO (Purpose and Mission)

exchanges and the Financial Industry Regulatory Authority (FINRA) are identified as self-regulatory organizations (SRO). SROs must create rules that allow for disciplining members for improper conduct and for establishing measures to ensure market integrity and investor protection. SRO proposed rules are subject to SEC review and published to solicit public comment. While many SRO proposed rules are effective upon filing, some are subject to SEC approval before they can go into effect.

SIPC (Securities Investor Protection Corporation)

insures losses of funds deposited with securities firms in the event of failure of a securities firm.

SEC (Jurisdiction)

power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies, securities exchanges, broker-dealers, investment advisors, and mutual funds

NASAA

responsible for updating the uniform securities act as well as maintaining the content of the series 63

FDIC (Federal Deposit Insurance Corporation)

the government agency that insures customers' deposits if a bank fails