TAKING THE SECURITIES INDUSTRY ESSENTIALS (SIE) EXAM? MAKE SURE TO STUDY RULES OF FINRA AND THE SEC!
If you are sitting for the SIE exam, you need to study rules of FINRA and the SEC, especially rules regarding anti-money laundering and safeguarding the financial privacy of customers and clients. FINRA requires all member broker/dealers to establish an anti-money laundering compliance program. There must be procedures put in writing to safeguard against money laundering. There must be reports sent periodically to a firm's senior management. As to safeguarding privacy of customers' financial information, the SEC has adopted Regulation S-P, that prohibits the disclosure of sensitive financial information of clients and customers. Regulation S-P mandates certain periodic written disclosures to customers advising them of their privacy rights. If you are fuzzy about these concepts, meaning that you are unable to confidently state, for example, the three stages of money laundering, or the substance of Regulation S-P, then you need to do more study preparation. Bob Eder J.D.&