SIE practice questionmediumMSRB Role
The Municipal Securities Rulemaking Board (MSRB) writes rules for which of the following?
- AMunicipal securities dealers and municipal advisors✓ Correct answer
- BAll securities dealers registered with the SEC
- COnly municipal securities dealers
- DState and local governments that issue municipal bonds
Explanation
Why A — Municipal securities dealers and municipal advisors
The MSRB writes rules governing municipal securities dealers AND municipal advisors. However, the MSRB has no enforcement authority — enforcement is carried out by FINRA (for broker-dealers) and the SEC (for municipal advisors and banks). The MSRB does not regulate the issuers themselves (state and local governments), nor does it regulate all securities dealers — only those dealing in municipal securities.
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