Enforcement for bank dealers not registered with FINRA?

• A. The Office of the Comptroller of Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation
• B. The Securities and Exchange Commission and FINRA
• C. The Municipal Securities Rulemaking Board
• D. The Office of Thrift Supervision

Answer: (A)

Enforcement for a bank that acts as a securities dealer but isn’t registered with FINRA comes from the banking regulators, not the securities regulators. Which regulator has authority depends on the bank’s charter and status: national banks are overseen by the Office of the Comptroller of the Currency; state-chartered banks that are members of the Federal Reserve System are overseen by the Federal Reserve Board; and state-chartered banks that are not Fed members are overseen by the Federal Deposit Insurance Corporation. These agencies handle enforcement actions, compliance reviews, and penalties related to the bank’s banking and securities activities. The SEC and FINRA regulate broker-dealers that are registered with them, while the Municipal Securities Rulemaking Board focuses on munis, and the Office of Thrift Supervision has been merged into other agencies.