FINRA SIE/6/7 Regulatory Overview

These flashcards cover essential regulations, definitions, and organizations relevant to the FINRA SIE exam.

Securities and Exchange Commission (SEC)

Federal agency regulating securities markets with a mission to protect investors, maintain fair markets, and facilitate capital formation.

Securities Act of 1933

Primary market legislation requiring issuers to disclose information to investors via a prospectus.

Registration Form

The document that issuers must file with the SEC to register securities offerings.

Regulation A

Exempts small securities offerings from full SEC registration, allowing Tier 1 and Tier 2 offerings.

Accredited Investor

An individual with a net worth of $1 million or more (excluding residence) or certain income thresholds.

Form U4

Registration form used by representatives to disclose employment and criminal history.

Self-Regulatory Organization (SRO)

Organizations like FINRA that regulate their own members and enforce compliance.

Municipal Securities Rulemaking Board (MSRB)

SRO that governs the municipal securities market but does not enforce its own regulations.

Securities Exchange Act of 1934

Legislation that regulates the secondary trading of securities and prevents fraud.

Insider Trading Act of 1988

Prohibits trading based on material, non-public information, imposing severe penalties.

Privacy Notices

Required documents provided to customers to inform them about how their information is used and safeguarded.

North American Securities Administrators Association (NASAA)

Regulates the financial industry at the state level and enforces the Uniform Securities Act.

Retail Communication

Any communication to more than 25 retail investors in 30 days that requires principal pre-approval.

Continuing Education (CE)

Training required for representatives to ensure they stay informed on regulatory changes.

Recordkeeping Requirements

Mandated periods for keeping records of various financial activities and client interactions.