SIE (Securities Industry Essentials) Practice Exam

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Regulation S-P is mainly concerned with:

Protection of privacy and identity information of clients
Regulation of securities and bond trading
Governance of international banking transactions
Enforcement of federal tax laws

The correct answer is: Protection of privacy and identity information of clients

Regulation S-P, also known as the Privacy of Consumer Financial Information Rule, is a regulation by the U.S. Securities and Exchange Commission (SEC) that is aimed at the protection of privacy and identity information of clients of financial institutions. It requires financial institutions to provide customers with privacy notices and allow them to opt out of sharing their personal information with third parties. Option B is incorrect because regulation of securities and bond trading falls under the Securities Exchange Act of 1934. Option C is incorrect because governance of international banking transactions is covered by other regulations such as the Bank Secrecy Act. Option D is incorrect because enforcement of federal tax laws falls under the jurisdiction of the Internal Revenue Service (IRS). Thus, option A is the correct answer as it best aligns with the main focus of Regulation S-P.