SIE practice questionmediumRole of the SEC with SROs
The SEC’s role with respect to SROs is best described as:
- ADirect management
- BOversight and approval of rules✓ Correct answer
- CDaily enforcement of SRO rules
- DSetting SRO membership dues
Explanation
Why B — Oversight and approval of rules
The SEC oversees SROs and approves their rules but does not directly manage them.
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Related Regulatory Framework questions
- Which database allows the public to view disciplinary history of registered representatives?
- If a firm disagrees with an SRO disciplinary action, to whom can it first appeal?
- Before an individual may represent a broker-dealer to the public, they must:
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