Practice Test Geeks(CSCP) Certified Securities Compliance Professional Practice Test
← All CSCP Flashcard Decks

Securities Laws & Regulations Flashcards

7 cards from real CSCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Securities Laws & Regulations flashcards as text

  1. Under the Securities Exchange Act of 1934, which entity is primarily responsible for regulating securities broker-dealers?

    Answer: SEC

    The SEC has primary regulatory authority over broker-dealers under the Securities Exchange Act of 1934, though it delegates day-to-day oversight to FINRA.

  2. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 created which new regulatory body?

    Answer: Financial Stability Oversight Council (FSOC)

    Dodd-Frank created FSOC to identify and respond to systemic risks to the U.S. financial system.

  3. Which SEC rule requires broker-dealers to act in the best interest of retail customers when making investment recommendations?

    Answer: Regulation Best Interest (Reg BI)

    Regulation Best Interest, adopted in 2019, requires broker-dealers to act in the best interest of retail customers and disclose conflicts of interest.

  4. A company that fails to file required periodic reports with the SEC may face which consequence under the Exchange Act?

    Answer: Suspension of trading in its securities

    The SEC may issue a trading suspension of up to 10 days for companies that fail to meet reporting requirements under the Exchange Act.

  5. Which provision of the Sarbanes-Oxley Act requires CEOs and CFOs to personally certify the accuracy of financial statements?

    Answer: Section 302

    Section 302 of SOX requires the principal executive and financial officers to certify the accuracy of periodic reports filed with the SEC.

  6. Under Regulation S-K, what is the purpose of the Management's Discussion and Analysis (MD&A) section of an SEC filing?

    Answer: To provide management's perspective on financial condition and results of operations

    MD&A requires management to discuss the company's financial condition, results of operations, liquidity, and capital resources in plain English.

  7. The Investment Advisers Act of 1940 imposes a fiduciary duty on registered investment advisers, which means they must:

    Answer: Act in the best interest of clients and disclose all material conflicts

    Investment advisers owe a fiduciary duty requiring them to act in clients' best interests and to make full and fair disclosure of all material conflicts of interest.