Which dept./ division detects and investigates market misconducts?

• A. The licensing division
• B. The enforcement division
• C. Investor Education
• D. Corporate Strategy

Answer: (B)

The ability to detect and investigate market misconducts rests with the enforcement division. This part of the regulator is staffed to monitor trading activity, assess suspicious patterns, handle complaints and tips, and conduct formal investigations when misconduct is suspected. They gather evidence, interview market participants, and implement disciplinary actions such as fines, bans, or other sanctions to maintain market integrity.

In contrast, the licensing division focuses on approving and supervising the fitness and authorization of firms and individuals to operate in the market, not on investigations into misconduct. Investor Education works to improve investors’ understanding and awareness but doesn’t perform investigations. Corporate Strategy is concerned with planning and directing the regulator’s overall goals and initiatives.