SIE practice questioneasySelf-Regulatory Organizations
FINRA is best described as which type of organization?
- AA division of the U.S. Treasury
- BA self-regulatory organization (SRO)✓ Correct answer
- CA federal government agency
- DA state regulatory body
Explanation
Why B — A self-regulatory organization (SRO)
FINRA (Financial Industry Regulatory Authority) is a self-regulatory organization (SRO), meaning it is a non-governmental body authorized by Congress to regulate its member broker-dealers. It operates under SEC oversight but is not a government agency. Common SIE trap: FINRA is NOT a government agency — it is a private, not-for-profit SRO.
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