FINRA SIE syllabus mapped to topic weightings with clear learning objectives; includes a bonus compliance module for red-flag escalation.
A crystal-clear, blueprint-aligned syllabus for the SIE. This page is generated from our internal curriculum so it stays in sync as outlines evolve. Use it as your study map and checklist—then jump into timed mocks and targeted drills.
This syllabus is based on FINRA’s official SIE Content Outline (4 scored sections). It also includes an optional bonus topic (0% weighting) that’s useful for real-world compliance judgment but not a separate scored section on the exam.
Regulatory Entities, Agencies and Market Participants
Explain the purpose and mission of the Securities and Exchange Commission (SEC) in regulating U.S. capital markets.
Differentiate the scope of authority between the SEC and self-regulatory organizations (e.g., FINRA, CBOE, MSRB).
Describe the oversight roles of the Department of the Treasury, Federal Reserve, NASAA, SIPC and FDIC.
Classify common market participants—investors, broker-dealers, investment advisers, municipal advisers, custodians, depositories—and summarize their primary functions.
Identify how clearing corporations such as DTCC and OCC facilitate trade comparison, clearing and settlement.
Determine which regulator, SRO or market participant is responsible for a given scenario.
Differentiate broker-dealers, investment advisers and municipal advisers by core services, compensation and regulatory oversight.
Explain the difference between introducing, clearing and prime broker-dealers and how clearing firms support trade settlement and custody.
Distinguish SIPC protection from FDIC insurance and identify common misconceptions about what each covers.
Market Structure
Compare the primary, secondary, third and fourth markets and describe how securities transact in each.
Distinguish electronic, over-the-counter and physical exchange venues within the secondary market.
Identify the parties (e.g., market makers, ATSs) that provide liquidity in different market structures.
Illustrate how a security transitions from new issue to secondary trading through syndication and market listing.
Analyze sample transactions to assign them to the correct market tier.
Explain how auction (order-driven) markets differ from dealer (quote-driven) markets in price discovery and liquidity provision.
Define bid, ask and bid–ask spread and interpret how spreads relate to liquidity and transaction costs.
Differentiate exchange trading, OTC trading and alternative trading systems (ATSs) in terms of transparency, reporting and typical participants.
Economic Factors
Distinguish monetary from fiscal policy and explain how Federal Reserve open-market operations influence money supply.
Interpret the effect of changes in the federal funds, discount and interest rates on bond yields and equity prices.
Identify phases of the business cycle and match leading, lagging and coincident indicators to each phase.
Compare Keynesian and Monetarist economic theories and their implications for government intervention.
Calculate the impact of exchange-rate fluctuations on U.S. balance of payments, GDP and GNP.
Use basic financial statements to evaluate company health in varying economic conditions.
Explain how inflation and inflation expectations affect interest rates, bond prices and equity valuations.
Interpret basic yield-curve shapes (normal, inverted, flat) and what each can signal about growth and interest-rate expectations.
Offerings
Differentiate public versus private offerings and cite common exemptions under Regulation D and Rule 144A.
Sequence the steps of an initial public offering (IPO) and describe the roles of investment bankers and underwriting syndicates.
Compare best-efforts and firm-commitment distribution methods and identify when each is appropriate.
Explain the purpose of shelf registration and the delivery requirements for prospectuses, official statements and program disclosure documents.
Recognize filing, blue-sky and disclosure requirements that apply to primary and follow-on offerings.
Explain the role of municipal advisers and underwriters in municipal securities offerings and why official statements are central to disclosure.
Describe the purpose of key offering documents—registration statement, prospectus, official statement and program disclosure document—and when each is used.
Differentiate initial public offerings, secondary offerings and follow-on offerings in terms of issuer proceeds, shareholder liquidity and disclosure.
Capital-Market Rules and Regulations Overview
Match key provisions of the Securities Act of 1933 (Sections 7, 8, 10, 23) to disclosure and registration requirements.
Apply the accredited-investor definition under Rule 215 to determine eligibility for private placements.
Explain when Rule 144, Rule 144A and Regulation D allow resale or limited offer of unregistered securities.
Describe the protections afforded by the Securities Investor Protection Act (SIPA) and FINRA Rule 2266 disclosures.
Identify MSRB Rules G-11, G-32 and G-34 requirements for municipal primary offerings.
Differentiate the Securities Act of 1933 from the Securities Exchange Act of 1934 in terms of what market activity each primarily regulates.
Describe the purpose of a summary prospectus (SEC Rule 431) and how it supports disclosure delivery while directing investors to full information.
Identify when FINRA Rule 2269 requires disclosure of a member’s participation or interest in a primary or secondary distribution.
Recognize prohibited inducements around market making (e.g., FINRA Rule 5250) and why these rules exist to protect fair markets.
Identify the ownership rights, liquidation priority and voting privileges of common versus preferred shareholders.
Explain the purpose and mechanics of subscription rights and warrants, including time value considerations.
Distinguish American Depositary Receipts (ADRs) from domestic shares and describe associated currency risk.
Calculate conversion ratios and parity prices for convertible preferred stock or bonds.
Apply SEC Rule 144 holding-period and volume limits to restricted and control securities.
Assess the suitability of different equity classes based on a client’s income, growth and risk objectives.
Differentiate cumulative, non-cumulative, participating, callable and convertible preferred stock and the investor objectives each may serve.
Distinguish subscription rights from warrants by issuer, term, dilution impact and typical use in financings.
Explain how voting rights, proxies and shareholder meetings connect to corporate governance and investor protections.
Identify characteristics of control and restricted stock and why affiliates face additional resale restrictions.
Debt Instruments
Compare Treasury bills, notes, bonds and receipts with respect to coupon, maturity, taxation and liquidity.
Describe the structure and prepayment risk of agency mortgage-backed securities (e.g., GNMA, FNMA, FHLMC).
Differentiate general obligation from revenue bonds and identify the revenue sources that secure each.
Illustrate the inverse relationship between bond price and market interest rates using current yield and yield-to-maturity calculations.
Analyze how callable, puttable and convertible features affect a bond’s yield and market value.
Contrast money-market instruments (commercial paper, bankers’ acceptances, CDs) by issuer, maturity and typical use.
Distinguish coupon rate, current yield, yield to maturity (YTM) and yield to call (YTC) and choose the appropriate measure given a scenario.
Explain how credit quality and rating changes can affect a bond’s market value and yield.
Compare competitive versus negotiated underwriting for municipal offerings and identify which party sets price/yield.
Identify key risks by product type—interest-rate risk, reinvestment/call risk, prepayment risk and liquidity risk—and match them to Treasuries, corporates, munis and MBS/ABS.
Options and Derivatives
Differentiate calls and puts, buyers and sellers, and outline the rights and obligations each contract creates.
Calculate intrinsic and time value to determine whether an option is in-, at- or out-of-the-money.
Describe the Options Clearing Corporation’s (OCC) role in contract issuance, exercise and assignment.
Compare American versus European exercise styles and standard expiration cycles for equity and index options.
Recommend appropriate hedging strategies—protective puts, covered calls, collars—based on client objectives and risk tolerance.
Identify regulatory disclosure requirements of the Options Disclosure Document (ODD) and timing of customer receipt.
Explain cash-settled index options versus physically settled equity options and how settlement affects exercise outcomes.
Compute breakeven points and max gain/loss for basic long call, long put, short call and short put positions.
Distinguish covered calls, protective puts and basic speculation (long options) by risk profile and typical use.
Describe the exercise and assignment process and why short option writers can be assigned at any time for American-style contracts.
Packaged Products and Investment Companies
Distinguish open-end funds, closed-end funds, unit investment trusts (UITs) and variable annuity contracts.
Calculate net asset value (NAV), public offering price (POP) and sales charges for mutual-fund share classes.
Explain breakpoint schedules, letters of intent (LOI) and rights of accumulation (ROA) designed to reduce sales charges.
Identify surrender charges, mortality and expense (M&E) fees and other unique costs of variable annuities.
Evaluate the tax advantages and ownership structure of 529 savings plans, prepaid tuition plans, LGIPs and ABLE accounts.
Describe direct-participation programs (limited partnerships, TICs) and the pass-through of income, losses and tax benefits.
Explain how open-end mutual funds are priced (once per day at NAV) and how cut-off times affect the price an investor receives.
Differentiate front-end loads, back-end loads and level loads (12b-1) and describe where each shows up in investor costs.
Compare closed-end funds (secondary-market pricing at premium/discount) with open-end funds (NAV-based pricing).
Summarize key disclosures for investment companies and variable contracts (prospectus delivery, fee tables and surrender-charge schedules) and how to use them when evaluating a product.
Alternative & Specialized Products and Risk Management
Contrast private, registered-non-listed and exchange-listed REITs and summarize their real-estate income and tax characteristics.
Describe exchange-traded products (ETFs, ETNs) and differentiate passive index tracking from actively managed strategies.
Identify major investment risks (market, credit, liquidity, currency, interest-rate, inflation) associated with alternative products.
Recommend diversification, rebalancing and hedging techniques to mitigate identified risks.
Differentiate ETFs and ETNs, including the added issuer credit risk of ETNs and common tracking considerations.
Identify the full range of core risk types tested on SIE (e.g., capital, credit, currency, inflation, interest-rate/reinvestment, liquidity, market/systematic, non-systematic, political, prepayment) and match them to common products.
Understanding Trading, Customer Accounts and Prohibited Activities (31%)
Differentiate market, limit, stop, stop-limit, day and good-til-canceled (GTC) orders and identify appropriate usage.
Select bullish, bearish, long, short, covered and naked strategies to meet an investor’s market outlook.
Explain principal versus agency trade capacity and the disclosures required on confirmations.
Describe settlement time frames for various products (e.g., trade date (T) and T+1) and recognize that some products may settle on different schedules.
Contrast physical versus book-entry delivery and outline the risks of failed settlement.
Apply order-type and settlement knowledge to determine the correct trade ticket entries in sample scenarios.
Differentiate solicited versus unsolicited orders and identify how suitability/recommendation obligations can differ.
Explain discretionary versus non-discretionary orders and the documentation/authorization required before exercising discretion.
Interpret bid, ask and spread quotes and calculate basic transaction-cost implications in sample scenarios.
Describe the basic mechanics of short selling and what makes a position 'short,' 'covered' or 'naked' in common retail scenarios.
Corporate Actions and Investment Returns
Calculate dividend yield, current yield, yield-to-maturity and total return for equity and debt securities.
Identify declaration, ex-dividend, record and payable dates and explain their impact on stock pricing.
Describe how stock splits, reverse splits and stock dividends affect share count, market price and cost basis.
Explain tender offers, buybacks, mergers and rights offerings and outline how notices, deadlines and proxy voting shape investor response options.
Determine contract adjustments for options underlying securities subject to corporate actions.
Distinguish interest, dividends, realized/unrealized gains and return of capital as components of investment return.
Explain basis points as a way to quote yield/interest-rate changes and convert between basis points and percent.
Describe cost-basis concepts (e.g., purchase price and adjustments from corporate actions) and why accurate basis matters for reporting and performance.
Identify the purpose of benchmarks and indices and how they are used to measure portfolio performance and risk.
Customer Account Types and Registrations
Compare the documentation and margin requirements for cash, margin and options accounts.
Distinguish individual, joint, corporate, trust, custodial (UTMA/UGMA) and partnership registrations.
Describe contribution limits, tax treatment and required minimum distributions for traditional and Roth IRAs and qualified plans.
Identify when discretionary authority, trading authorizations or power-of-attorney are required.
Evaluate the suitability of fee-based advisory versus commission brokerage arrangements for various client profiles.
Explain how cash and margin accounts differ in buying power, interest charges and risk of margin calls.
Differentiate common joint registrations (JTWROS vs tenants-in-common) and their implications for survivorship and ownership.
Identify common documentation/authority requirements for entity and fiduciary accounts (corporate resolutions, partnership agreements, trust documents, custodial paperwork).
Compliance Considerations: AML, Books, Privacy and Communications
Identify the placement, layering and integration stages of money laundering and trigger points for SAR and CTR filings.
Explain firm obligations when a client appears on the OFAC Specially Designated Nationals (SDN) list.
Outline record-creation and retention periods for blotters, confirmations, statements and advertising under SEC and FINRA rules.
Describe Regulation S-P privacy notices, opt-out rights and safeguard requirements for non-public personal information.
Apply FINRA telemarketing rules, including do-not-call list checks and permissible time-of-day contacts.
Demonstrate how KYC and suitability information is gathered, documented and updated for retail and institutional clients.
Describe the core elements of a broker-dealer AML compliance program (policies, training, independent testing and designated AML officer).
Explain Customer Identification Program (CIP) requirements and how identity verification, recordkeeping and comparison to government lists support AML compliance.
Distinguish correspondence, retail communications and institutional communications and identify when principal pre-approval is required.
Explain the purpose of Regulation Best Interest (Reg BI) at a high level and how it interacts with suitability obligations for recommendations.
Describe business continuity planning and customer protection safeguards (custody, account statements, holding mail) that support client access and asset protection.
Prohibited and Unethical Activities
Define market-manipulation schemes (pump-and-dump, marking the open/close, front running, backing away, free-riding) and recognize their red-flag indicators.
Describe insider-trading liabilities and penalties imposed on tippers, tippees and controlling persons under ITSFEA.
Explain prohibitions and documentation requirements for borrowing from or lending to customers and sharing in customer accounts.
Recognize the steps a firm must take when financial exploitation of a senior or vulnerable adult is suspected.
List potential sanctions for falsifying records, refusing to comply with regulatory requests or engaging in unregistered activity.
Define material nonpublic information (MNPI) and distinguish insider trading from permissible trading based on public information.
Recognize churning/excessive trading and why quantitative suitability focuses on turnover, cost-to-equity and in-and-out trading.
Identify restrictions on activities of unregistered persons, including prohibitions on solicitation, order taking and receiving transaction-based compensation.
Explain why signatures of convenience and falsified documents undermine supervision and violate core ethical standards.
Define registered representative, associated person and non-registered employee and list activities permitted to each.
Outline the Form U4 filing process, including fingerprinting and background checks.
Identify statutory-disqualification events that render a person ineligible for registration or association.
Describe Regulatory Element and Firm Element continuing-education requirements and timing.
State consequences for failing to register or to complete CE within prescribed time frames.
Explain how the SIE pairs with top-off qualification exams and why firm sponsorship is required for most top-off exams but not for SIE.
Describe the purpose of background checks and fingerprinting (SEC Rule 17f-2) in protecting the industry and investors.
Recognize that state 'blue-sky' rules can impose additional registration/qualification requirements beyond federal and SRO rules.
Employee Conduct and Reportable Events
Summarize the information that must be updated on Form U4 within 30 days of a reportable event.
Explain the purpose of Form U5 and consequences for late or inaccurate filings after termination.
Identify reportable events such as felony charges, certain misdemeanors, liens or bankruptcies and required disclosures.
Describe procedures for logging and resolving written customer complaints under FINRA Rule 4513.
Recognize red flags of employee misconduct and articulate escalation steps to compliance or senior management.
Differentiate outside business activities (OBAs) from private securities transactions (PSTs) and identify common approval, disclosure and reporting steps.
Describe what counts as a written customer complaint and how firms must capture, retain and supervise complaint handling.
Explain why filing misleading or incomplete information on registration forms can lead to discipline, sanctions and statutory disqualification.
Supervisory Obligations and Recordkeeping
State the books-and-records retention periods required under SEC Rules 17a-3 and 17a-4 and FINRA Rule 4511.
Describe a firm’s duty to investigate the background of registration applicants under FINRA Rule 3110(e).
Explain confirmation, statement and proxy-delivery requirements and associated retention deadlines.
Identify mandatory components of a Business Continuity Plan (BCP) and annual review obligations.
Apply recordkeeping rules to determine whether documents in sample scenarios must be created, retained or reproduced.
Describe the high-level purpose of supervision at a broker-dealer (policies, procedures, escalation, audit trail) even though SIE does not test detailed supervisory systems.
Identify key records that support customer protection (e.g., customer account information and authorization records) and the risks of improper retention or alteration.
Gifts, Political Contributions and Outside Business Activities
Apply the $100 annual gift-limit under FINRA Rule 3220 and list allowable business-entertainment exceptions.
Describe approval and disclosure steps for outside business activities under FINRA Rule 3270.
Explain MSRB Rule G-37 restrictions on political contributions by municipal securities professionals.
Identify non-cash-compensation limits and conditions for mutual-fund, variable-annuity and DPP sales meetings.
Assess scenarios for potential violations involving gifts, gratuities, travel, entertainment or political donations.
Differentiate gifts from business entertainment and apply common compliance factors (who, what, why, value, frequency) to borderline scenarios.
Identify the types of non-cash compensation that require heightened controls (sales contests, trips, training meetings) and why they can create conflicts of interest.
Statutory Disqualification and Disciplinary Actions
Define statutory disqualification under Exchange Act Section 3(a)(39) and give common triggering events.
Outline FINRA’s disciplinary process—from investigation through formal complaint, hearing and appeal.
Describe the information available to the public through FINRA’s BrokerCheck system and update frequency.
Illustrate the arbitration and mediation options available to customers and associated persons for dispute resolution.
Identify sanctions—including censure, fine, suspension or expulsion—imposed for filing misleading information or failing to cooperate with FINRA.
Explain what statutory disqualification can mean in practice (heightened supervision, restrictions, or ineligibility) and why disclosure accuracy matters.
Distinguish arbitration/mediation from regulatory enforcement and identify what issues are typically handled through each process.
Identifying and Escalating Red Flags: A Registrant's Gatekeeper Role (0%)