SIE practice questionmediumSRO Registration Requirements
What must a firm do before doing business as a broker-dealer?
- AObtain approval from the FDIC
- BRegister and become a member of an SRO like FINRA✓ Correct answer
- CFile tax returns with the IRS
- DRegister with the Federal Reserve
Explanation
Why B — Register and become a member of an SRO like FINRA
A broker-dealer must register and become an SRO member, usually with FINRA, before operating.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Regulatory Framework questions
- If a registered representative is found to have violated SRO rules, what is the SRO’s first step?
- The Municipal Securities Rulemaking Board (MSRB) sets rules for which entities?
- Disputes between SRO members and their clients are usually resolved through which process?
- FINRA is primarily responsible for regulating which of the following?