Regulatory Organizations

SEC (Securities and Exchange Commission)

• Federal agency that oversees ALL securities markets
• Enforces Securities Act of 1933 (new issues) and Securities Exchange Act of 1934 (secondary trading)
• Approves/denies SRO rule changes
• Can bring civil actions, NOT criminal (DOJ handles criminal)

FINRA (Financial Industry Regulatory Authority)

• Self-Regulatory Organization (SRO) for broker-dealers
• Registers representatives (Form U4 entry, Form U5 termination)
• Operates BrokerCheck — public database of registered reps
• Administers qualification exams (SIE, Series 7, etc.)

MSRB (Municipal Securities Rulemaking Board)

• Writes rules for municipal securities dealers & advisors
• Does NOT enforce its own rules — FINRA and SEC enforce them
• Operates EMMA (Electronic Municipal Market Access) — free public access to muni data

SIPC (Securities Investor Protection Corporation)

• Protects brokerage customers if a broker-dealer FAILS (goes bankrupt)
• Coverage: up to $500,000 per customer ($250,000 cash limit)
• NOT insurance — does NOT protect against market losses
• NOT a government agency — funded by member assessments

FDIC (Federal Deposit Insurance Corporation)

• Insures BANK deposits (checking, savings, CDs)
• Up to $250,000 per depositor, per bank, per ownership category
• Does NOT cover investments (stocks, bonds, mutual funds)

FRB (Federal Reserve Board)

• Central bank of the United States
• Sets monetary policy (interest rates, money supply)
• Sets Regulation T (margin credit requirements = 50%)
• Operates the discount window (lending to banks)