SIE practice questionhardMSRB Rules
Which regulatory body writes rules governing broker-dealers in the municipal securities market and what is the scope of its enforcement authority?
- ASEC writes and enforces all rules
- BMSRB writes and enforces all rules
- CFINRA writes the rules; SEC enforces them
- DMSRB writes the rules; FINRA and SEC enforce them✓ Correct answer
Explanation
Why D — MSRB writes the rules; FINRA and SEC enforce them
MSRB creates rules for municipal securities dealers, but does not enforce them. FINRA and SEC handle enforcement. FINRA doesn't write MSRB rules, and the SEC oversees but does not solely handle rulemaking/enforcement.
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