December 1, 2023

As a financial advisor, it is important to be aware of the different financial regulators and agencies that you may come into contact with. SIE exam candidates should be familiar with the Department of the Treasury/IRS, state regulators (e.g., NASAA), The Federal Reserve, Securities Investor Protection Corporation (SIPC), and Federal Deposit Insurance Corporation (FDIC). In this blog post, we will provide an overview of each regulator or agency and what their role is in the financial industry.

The Department of the Treasury/IRS is one of the primary financial regulators in the United States. Their main responsibility is to enforce tax and revenue laws, as well as oversee the collection of taxes and other monetary duties. They also have regulatory oversight over certain aspects of the financial industry, such as money services businesses and foreign financial institutions.

State regulators, such as NASAA, are responsible for overseeing a variety of different areas within the financial industry, including broker-dealers (BDs), investment advisers (IAs), fund companies, insurance providers, etc. As such, they play an important role in ensuring that all entities operating in these industries are adhering to regulatory requirements and taking steps to safeguard consumer interests.

The Federal Reserve is another key regulator in the financial industry, with a focus on monetary policy and banking supervision. As such, they are responsible for monitoring the US banking system and ensuring that banks are complying with federal regulations, including those related to capital adequacy, liquidity requirements, and risk management policies.

The Securities Investor Protection Corporation (SIPC) is a non-profit corporation established by Congress in 1970 to provide protection for customers of SIPC member broker-dealers if the broker-dealer becomes insolvent or otherwise fails to meet its obligations. SIPC’s role is similar to that of the FDIC, which provides insurance coverage for bank accounts.

Lastly, the Federal Deposit Insurance Corporation (FDIC) is another key regulatory body that promotes the safety and soundness of financial institutions through bank supervision and insurance programs. Their goal is to protect the US banking system from instability, ensuring that consumers have access to safe and reliable financial services. Overall, these are just a few of the many regulators and agencies that Series 7 exam candidates need to be familiar with in order to succeed in their careers as financial advisors.

These and many other topics will be covered on the Series 7 exam. Achievable offers a comprehensive sample Series 7 exam to prepare you for the Series 7 Exam. With proper Series 7 exam preparation, you can feel confident in your ability to succeed as a financial advisor!

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