SIE practice questionhardMunicipal Bonds - MSRB Enforcement
If an MSRB rule is violated by a broker-dealer, who has the power to enforce disciplinary action?
- AThe Federal Reserve only
- BMSRB directly
- CFINRA or federal bank regulators, depending on the firm✓ Correct answer
- DThe IRS
Explanation
Why C — FINRA or federal bank regulators, depending on the firm
MSRB sets the rules, but enforcement is done by FINRA (for securities firms) or bank regulators (for banks), not by MSRB, the Fed, or IRS.
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