SIE practice questionhardSRO Inspection Powers
Which of the following best describes SROs’ inspection authority?
- AMay only inspect upon a criminal complaint
- BHas broad authority to inspect member firms for compliance at any time✓ Correct answer
- CCan only inspect with SEC approval
- DInspections must be court-ordered
Explanation
Why B — Has broad authority to inspect member firms for compliance at any time
SROs have broad authority to inspect members without waiting for complaints or court order.
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