What power does the MSRB lack that is enforced by other organizations?

The Municipal Securities Rulemaking Board (MSRB) is responsible for creating rules and regulations for firms and professionals involved in the municipal securities market, but it does not have the power to enforce these rules. Instead, enforcement authority is typically vested in other regulatory bodies, such as the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA). This structure means that while the MSRB can set forth guidelines and standards for conduct in the municipal securities industry, it relies on these other organizations to ensure compliance and impose penalties for violations. Understanding this distinction is vital, as it illustrates the collaborative framework of regulatory oversight within the securities industry.