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The SEC oversees SROs such as FINRA and MSRB, ensuring they comply with federal securities laws. FINRA (B) regulates broker-dealers under SEC oversight, OCC (C) clears options, and the Fed (D) manages monetary policy. Candidates must understand this hierarchy for Series exams.

Fiscal policy refers to government spending and taxation decisions made by Congress and the President. Monetary policy (A, D) is conducted by the Federal Reserve, while Treasury auctions (C) are financing tools, not fiscal policy. FINRA exams test fiscal versus monetary policy to ensure candidates can explain how both affect markets and client portfolios.

The SEC enforces insider trading laws, prosecuting individuals and firms who misuse material non-public information. FINRA (A) enforces industry rules under SEC oversight, MSRB (C) creates municipal rules but does not enforce them, and SIPC (D) is an insurance program. Series exams stress recognizing SEC authority in enforcement.

FINRA Rule 4512 requires DOB, employment, and investment objectives but does not mandate a credit score. Understanding required vs. optional information is critical to compliance with account-opening procedures.

The Options Clearing Corporation (OCC) issues and guarantees listed options contracts, providing stability and reducing counterparty risk. The SEC (A) oversees securities markets broadly, FINRA (B) regulates broker-dealer conduct, and the CFTC (D) regulates commodities and futures. Recognizing the OCC’s role is key for Series exam candidates, as options trading involves unique risks and regulatory requirements.