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A Currency Transaction Report (CTR) must be filed with FinCEN for any cash deposits, withdrawals, or exchanges exceeding $10,000 in one business day. A Suspicious Activity Report (SAR) is filed when activity appears designed to evade reporting (structuring). Form ADV is for investment advisers. Customer complaints follow FINRA rules. The SIE exam frequently tests the distinction between CTRs and SARs, along with filing thresholds and timelines.

The fourth market involves direct institution-to-institution trading, often through electronic communication networks (ECNs), without broker-dealers. The third market is OTC trading of exchange-listed securities. IPOs are primary market transactions. Municipal trading is part of the secondary market. The SIE exam requires candidates to differentiate among market types.

The Securities Investor Protection Corporation (SIPC) provides limited protection if a broker-dealer fails financially. It covers up to $500,000 per customer, including $250,000 for cash. SIPC does not protect against market losses—only broker insolvency. The FDIC insures bank deposits, not securities. FINRA is a self-regulatory organization for broker-dealers, not an insurer. The Options Clearing Corporation (OCC) guarantees option contract performance, not customer account protection. The SIE requires candidates to distinguish among these entities and their roles in investor protection, emphasizing that SIPC coverage applies to custody failures, not investment risk.

The Bank Secrecy Act, strengthened by the USA PATRIOT Act, requires firms to establish AML programs, report suspicious activities, and maintain records of large cash transactions. The 1933 Act covers securities registration, the Advisers Act regulates investment advisers, and Sarbanes-Oxley deals with corporate governance. The SIE exam tests which regulations drive AML obligations.

Commercial paper is a short-term corporate promissory note, usually maturing within 270 days, making it exempt from SEC registration. Treasury notes, corporate bonds, and municipal bonds generally require registration unless another exemption applies. The SIE exam tests exemptions under the Securities Act of 1933.