Regulatory Framework and Compliance

In this section

• Securities Acts and Key Laws
  Review the major federal securities laws and investor-protection statutes tested on the SIE.
  • Securities Act of 1933
    Study registration requirements, prospectus delivery, and exemptions under the Securities Act of 1933.
  • Securities Exchange Act of 1934
    Review market regulation, broker-dealer oversight, and reporting obligations under the 1934 Act.
  • Investment Company Act of 1940
    Understand how the Investment Company Act regulates mutual funds and other registered investment companies.
  • Investment Advisers Act of 1940
    Review the regulatory framework for investment advisers under the Advisers Act.
  • Securities Investor Protection Act (SIPA)
    Study SIPA, SIPC coverage, and how customer assets are protected when a broker-dealer fails.
  • Insider Trading and Securities Fraud Enforcement Acts
    Review the laws that strengthened enforcement against insider trading and securities fraud.
  • Sarbanes-Oxley Act
    Understand the Sarbanes-Oxley reforms aimed at corporate accountability and financial reporting integrity.
  • Dodd-Frank Act
    Study the major market, consumer, and systemic-risk reforms introduced by Dodd-Frank.
• Self-Regulatory Organizations (SROs)
  Review FINRA, MSRB, and the role of self-regulatory organizations in the securities industry.
  • FINRA Rules and Bylaws
    Study FINRA’s rulemaking and bylaw framework for member firms and associated persons.
  • MSRB Rules for Municipal Securities
    Review the MSRB rules that govern municipal securities activities.
  • SRO Roles and Functions
    Understand how self-regulatory organizations supervise markets and member conduct.
• Registration and Licensing Requirements
  Study registration forms, licensing steps, and continuing education obligations.
  • Associated Person Registration
    Review when associated persons must register and what registration requires.
  • Form U4 and U5 Procedures
    Study the purpose, use, and reporting implications of Forms U4 and U5.
  • Continuing Education Requirements
    Understand continuing education obligations for registered securities professionals.
• Employee Conduct and Reportable Events
  Review employee conduct rules, disqualifying events, complaints, and outside activities.
  • Statutory Disqualification
    Study the disqualifying events that can bar or limit participation in the securities industry.
  • Outside Business Activities
    Understand the disclosure and supervision issues tied to outside business activities.
  • Political Contributions and Pay-to-Play Rules
    Review pay-to-play restrictions and political contribution rules in the securities industry.
  • Gifts, Gratuities, and Non-Cash Compensation
    Study the limits on gifts, gratuities, and non-cash compensation arrangements.
  • Complaint Handling and Reporting Requirements
    Review how firms classify, document, escalate, and report customer complaints.
• Customer Protection and Ethical Practices
  Study Reg BI, suitability, KYC, best execution, and protections for senior investors.
  • Regulation Best Interest (Reg BI)
    Review the Reg BI standard and the obligations it places on broker-dealers.
  • Suitability and Know Your Customer (KYC)
    Understand suitability and KYC duties when making recommendations to customers.
  • Fiduciary Duty and Best Execution
    Review fiduciary standards and the obligation to seek best execution for customer orders.
  • Senior Investor Protections
    Study the rules and practices designed to protect senior investors from abuse and exploitation.
• Recordkeeping and Reporting Requirements
  Review books and records, regulatory filings, continuity planning, and cybersecurity expectations.
  • Books and Records Maintenance
    Study the recordkeeping requirements that apply to broker-dealers and associated persons.
  • Regulatory Filings and Notifications
    Understand key filing and notification obligations in the regulatory framework.
  • Business Continuity Plans (BCP)
    Review continuity planning requirements and how firms prepare for operational disruptions.
  • Cybersecurity and Data Protection
    Study cybersecurity and data-protection expectations relevant to securities firms.