SIE practice questioneasySROs vs Government Agencies
Which of the following statements about SROs is correct?
- ASROs are part of the U.S. government
- BSROs are private organizations that regulate the industry under SEC oversight✓ Correct answer
- CSROs only regulate investment advisers
- DSROs are funded by taxpayer dollars
Explanation
Why B — SROs are private organizations that regulate the industry under SEC oversight
SROs are private, non-governmental organizations functioning under SEC oversight.
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Related Regulatory Framework questions
- Which disciplinary action is NOT typically performed by an SRO?
- Which of the following is NOT an SRO?
- Which organization regularly examines broker-dealers for compliance with SRO rules?
- Who creates the rules that SROs enforce on their members?
- Who oversees SROs to ensure they are acting in the public's best interest?
- If a registered representative violates an SRO rule, which entity is most likely to discipline them?
- SROs derive their authority primarily from which act?
- Most broker-dealers in the United States are required to be members of which SRO?