SIE practice questionhardMunicipal Fund Securities — Registration
529 plans are classified as municipal fund securities and are regulated by:
- AThe SEC exclusively
- BThe Federal Reserve Board
- CThe MSRB (Municipal Securities Rulemaking Board), which sets rules for professionals who sell them✓ Correct answer
- DNo regulatory body oversees 529 plans
Explanation
Why C — The MSRB (Municipal Securities Rulemaking Board), which sets rules for professionals who sell them
529 plans are classified as municipal fund securities under MSRB rules. The MSRB sets conduct rules for brokers, dealers, and municipal advisors who sell or advise on 529 plans. However, the MSRB does not enforce its own rules — enforcement is handled by FINRA (for broker-dealers) and the SEC. 529 plans are also exempt from SEC registration under the Securities Act.
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