SIE (Securities Industry Essentials) Practice Exam

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What is the role of the M&A Department under FINRA regulations?

  1. Audits financial statements of publicly traded companies

  2. Creates the firm's procedures pertaining to Merger and Acquisition activity

  3. Regulates the trading of stocks and bonds

  4. Issues licenses to new broker-dealers

The correct answer is: Creates the firm's procedures pertaining to Merger and Acquisition activity

The role of the M&A Department under FINRA regulations is to create the firm's procedures pertaining to Merger and Acquisition activity. This involves developing and implementing policies and guidelines that ensure compliance with FINRA rules and regulations. Option A is incorrect as this is the role of the Public Company Accounting Oversight Board (PCAOB), not FINRA. Option C refers to the Securities and Exchange Commission (SEC), not FINRA. Option D is incorrect as FINRA does not issue licenses to broker-dealers, but instead approves and registers them.

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