Series 6 Practice Exam 2025 – Complete Exam Prep Resource

The Financial Industry Regulatory Authority (FINRA) is the entity responsible for regulating the conduct of registered representatives. As a self-regulatory organization, FINRA oversees the activities of broker-dealers and their registered representatives to enforce compliance with federal securities laws and its own rules. This includes monitoring trading practices, overseeing advertising, and ensuring proper conduct among financial professionals to protect investors and maintain market integrity.

While the Securities and Exchange Commission (SEC) is the primary regulatory body overseeing the securities industry as a whole and has the authority to enforce federal securities laws, it does not directly regulate the day-to-day conduct of registered representatives. Instead, it relies on organizations like FINRA to carry out these specific regulatory functions.

The Internal Revenue Service (IRS) primarily focuses on tax enforcement and does not have a direct role in regulating the conduct of registered representatives in terms of securities transactions. Similarly, the Federal Trade Commission (FTC) deals with issues related to consumer protection and antitrust laws, which do not intersect with the regulation of registered representatives in the financial services sector.

Thus, the answer correctly identifies FINRA as the entity whose role is to ensure that registered representatives adhere to ethical standards and regulatory requirements within the financial industry.