Finra
Which organization regulates broker-dealers?
FINRA = broker-dealers. SEC = oversees FINRA. MSRB = municipal securities.
Complete Analysis & Legal Rationale
FINRA (Financial Industry Regulatory Authority) is the self-regulatory organization (SRO) that regulates broker-dealers and their registered representatives.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
The FRB regulates monetary policy and banks, not broker-dealers.
Matches the verified teaching point in the explanation.
The MSRB regulates municipal securities dealers, a subset of the industry.
State insurance commissioners regulate insurance companies, not broker-dealers.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.