Rule 5 of 11 in this unit1.1.3

1.1.3 Other Regulators and Agencies

SIE outline 1.1.3

FINRA Rule 2266: Your SIPC Notice

FINRA Rule 2266: members shall advise all new customers, in writing, at the opening of an account, that they may obtain information about SIPC including the SIPC brochure, and shall provide SIPC's website address and telephone number: then provide all customers the same information, in writing, at least once each year. NOT a one-time disclosure. Where an introducing and a clearing firm both service the account, the duty may be assigned to one of them: but it never disappears.

The method for this kind of question
  1. 1h45m ÷ 80 items = 78.75 seconds per item. A regulator item should cost you 30.
  2. Four cells decide these: what it regulates, what it cannot do, its statute, its number.
  3. “The SEC approved” is always wrong: Securities Act Section 23 makes the claim unlawful.
  4. MSRB + the word enforcement = the writer-versus-enforcer split. MSRB writes; FINRA enforces.
  5. Regulation T is the Fed's rule: 12 CFR Part 220, 50% floor at §220.12(a): never FINRA's.
  6. Firm failed → SIPC ($500,000 / $250,000 cash). Bank failed → FDIC ($250,000). Neither pays for a price drop.
  7. Next: SIE Practice Quiz #4: Capital Markets Mixed Set, weighted like the real exam.

Now answer

1 question on this screen, from this outline item's own pool, so some will test a rule you met earlier in the unit. Pick an answer, say how sure you are, then reveal. Being sure and wrong is the most useful thing that can happen here, and the coach treats it that way.

Question 1Exam level

A customer holds $340,000 in a savings account at a single FDIC-insured bank. How much of it is insured?

How sure are you?

Correct: B. $250,000. That is the FDIC's per-depositor, per-bank limit. The remaining $90,000 at this one bank is not insured.
A. Treats FDIC coverage as unlimited. It is capped at $250,000 per depositor, per bank, no matter the account balance.
C. Invents a halfway figure. The FDIC limit is a flat $250,000, not a percentage of the balance.
D. A savings account is exactly the kind of deposit the FDIC exists to insure.

Unit: SIE outline 1.1.3

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