Which statement is true about firms that are not SRO members?

1. AThey may not legally act as broker-dealers✓ Correct answer
2. BThey can operate without restriction
3. CThey are automatically regulated by FINRA
4. DThey must join the SEC

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• A broker-dealer that is a member of both FINRA and the MSRB must follow whose rules?
• After exhausting the SRO's internal appeals, a firm can appeal disciplinary decisions to:
• Why is SRO registration required for broker-dealers?
• What can an SRO do to ensure compliance among its members?