STUDY FOR THE SECURITIES INDUSTRY ESSENTIALS EXAM (SIE) EXAM

The Securities Industry Essentials (SIE) Exam is a necessary first step if you plan to sit for many securities exams, including the Series 6 and Series 7 exams. If you do intend to sit for the SIE Exam, make sure that you know about self-regulatory organizations (SRO's), what they are, who they are, and what their purpose is. FINRA publishes a Content Outline for the SIE Exam, and Section 1.1.2 specifically talks about Self-Regulatory Organizations(SRO's), indicating that you should expect to see questions about SRO's on your exam. Bob Eder discusses SRO's in his Study for the Securities Industry Essentials (SIE) Exam. Here is a sample of Bob Eder's treatment: Self-Regulatory Organizations                                                      ...

Section 1 (1) (2) of FINRA's Content Outline for the Securities Industry Essentials (SIE) exam covers self-regulatory organizations, or SRO's. The Content Outline indicates that a person taking the SIE exam should be familiar with, and have knowledge of, the purpose and mission of an SRO, and understand the jurisdiction and authority of the various SRO's such as the CBOE, FINRA, and the MSRB. Bob Eder's Study for the Securities Industry Essentials (SIE) Exam covers SRO's on page three. Here is the pertinent paragraph from Bob Eder: Purpose of Self-Regulatory Organizations Each SRO is primarily dedicated to making sure that investors and the public are protected in their relationships with broker/dealers and securities professionals. A SRO tries to foster and maintain integrity in the market place by policing and regulating its members. A SRO is not a government entity but set up as a non-profit corporation. A SRO makes rules for its member broker/dealers, enforces...