The securities industry is a highly regulated industry. All broker dealers are required to regulate their employees. A broker dealer must designate a principal to supervise all of the actions of the firm and its employees. The broker dealer and all of its employees are also regulated by an SRO (Self Regulatory Agency), such as FINRA or the NYSE. The SRO’s and all industry participants answer to the SEC. The SEC is the ultimate securities industry authority. Additionally, each state has adopted their own rules and regulations regarding securities transactions within their state. Violations of industry regulations may lead to fines and expulsion from the industry. Violations of state and federal laws may result in fines, expulsion from the state or industry, or a jail term. Industry participants are expected to adhere to all of the industry’s rules and regulations, as well as all state and federal laws.

Pass The Series 62 Exam

 

 

Fair Dealings With Customers

Related Articles
  1. Trading

    Is your forex broker a scam?

    While the forex market is slowly becoming more regulated, there are many unscrupulous brokers who should not be in business.
  2. Trading

    Get To Know These Crucial US Options Market Regulations

    How are options regulated in the U.S and which organizations are involved in options market regulations?
  3. Investing

    Picking your first broker

    If you're a rookie investor, choosing a broker may be your first big investment decision. Learn more on whether you should you go with a full-service broker or a discount broker.
  4. Investing

    Brokerage Functions: Underwriting and Agency Roles

    Learning about underwriting and agency roles at a brokerage can give insight into how securities are issued and traded.
  5. Investing

    Is Your Broker Legit? 6 Steps to Take

    The Great Recession may be over, but broker wrongdoing hasn't. How to avoid the next Bernie Madoff.
  6. Personal Finance

    How to Evaluate Financial Advisors Via BrokerCheck

    Many people research restaurants or movies, but few select brokers or financial advisors with much due diligence. Here's how BrokerCheck can help.
  7. Trading

    Broker or trader: Which career is right for you?

    A day in the life of a broker or Wall Street trader is an exciting and varied one. Learn more about these two financial professions.
  8. Personal Finance

    Research Report Red Flags For Brokers

    Discover how to look past analysts' ratings to find winning stocks for your clients.
  9. Insights

    How States May Regulate Wall Street Under Trump

    Donald Trump’s stunning election upset brings with it many questions about the future of the financial regulatory industry.
Trading Center