SIE Syllabus — Blueprint & Learning Objectives

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.

What’s covered

• Knowledge of Capital Markets (16%)
• Understanding Products and Their Risks (44%)
• Understanding Trading, Customer Accounts and Prohibited Activities (31%)
• Overview of the Regulatory Framework (9%)
• Identifying and Escalating Red Flags: A Registrant's Gatekeeper Role (0%)

Knowledge of Capital Markets (16%)

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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.

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.

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.

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.

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.

Understanding Products and Their Risks (44%)

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Equity Securities

• 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.

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.

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.

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.

Alternative & Specialized Products and Risk Management

• Contrast private, registered-non-listed and exchange-listed REITs and summarize their real-estate income and tax characteristics.
• Summarize hedge-fund features—accredited-investor minimums, lock-up periods, fee structures and liquidity constraints.
• 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.

Understanding Trading, Customer Accounts and Prohibited Activities (31%)

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Trading Orders, Strategies and Settlement

• 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 cycles (T, T+1, T+2) for equities, corporate bonds, Treasuries, options and mutual funds.
• 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.

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 investor response options.
• Determine contract adjustments for options underlying securities subject to corporate actions.

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.

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.

Prohibited and Unethical Activities

• Define market-manipulation schemes (pump-and-dump, marking the close, 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.
• Apply FINRA Rule 5130 restrictions on associated persons purchasing equity IPO shares.
• 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.

Overview of the Regulatory Framework (9%)

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Registration and Continuing Education

• 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.

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.

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.

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.

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.

Identifying and Escalating Red Flags: A Registrant's Gatekeeper Role (0%)

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AML Red Flags and Escalation

• Detect structuring patterns designed to evade the $10,000 Currency Transaction Report (CTR) threshold.
• Identify unusual wire transfers—especially to high-risk jurisdictions—and assess the need for escalation.
• Explain an individual’s duty to escalate potential money-laundering activity internally rather than file a SAR personally.
• Describe the role of the firm’s AML compliance officer and FinCEN in the SAR filing process.
• Maintain confidentiality of SAR discussions in compliance with safe-harbor provisions.

Protecting Senior and Vulnerable Investors

• Recognize behavioral signs of diminished capacity, coercion or confusion in senior clients.
• Identify transactional red flags—large withdrawals, sudden beneficiary changes, uncharacteristic investments—that may indicate exploitation.
• Explain FINRA Rule 2165 procedures for placing a temporary hold on disbursements when exploitation is suspected.
• Escalate suspected abuse promptly to a supervisor or compliance officer and document the concern.
• Communicate empathetically and clearly with senior clients while following firm escalation protocols.

Insider Trading and Information Barriers

• Define material non-public information (MNPI) and list common examples encountered in a brokerage environment.
• Illustrate how information barriers (Chinese Walls) limit the internal flow of MNPI within a firm.
• Describe the immediate steps to take when an employee inadvertently receives MNPI.
• Explain civil and criminal penalties applicable to insider-trading violations for both individuals and firms.
• Detail the escalation path to compliance or legal departments when insider-trading concerns arise.

Market Manipulation and Prohibited Trading Practices

• Identify trading patterns indicative of marking the close, painting the tape, wash trades or pump-and-dump schemes.
• Differentiate legitimate market-making or customer facilitation from manipulative quote activity.
• Report suspicious trading activity through the firm’s escalation chain and document relevant trade details.
• Describe required recordkeeping for escalated manipulation concerns under SEC and FINRA rules.
• Articulate the ethical responsibility of registered persons to act as gatekeepers safeguarding market integrity.

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