Which organization enforces MSRB rules for broker-dealers?

• A. MSRB
• B. SEC
• C. FINRA
• D. CFTC

Answer: (C)

MSRB sets the rules, but it doesn’t enforce them. For broker-dealers, enforcement of MSRB rules is carried out by FINRA, the self-regulatory organization responsible for overseeing broker-dealers, under the SEC’s overall supervision. This means FINRA handles disciplinary actions and investigations related to MSRB rule violations by member firms. While the SEC has enforcement authority in securities matters, FINRA is the primary enforcer of MSRB rules in the broker-dealer space. The CFTC deals with futures and commodities, which are outside municipal securities.