Why is SRO registration required for broker-dealers?

1. AFor tax purposes
2. BTo ensure compliance with ethical and operational standards✓ Correct answer
3. CTo allow them to operate outside the SEC’s jurisdiction
4. DSo they can open bank accounts

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• Which statement best compares FINRA and the MSRB?
• A broker-dealer that is a member of both FINRA and the MSRB must follow whose rules?
• A broker-dealer found in violation of SRO rules may be subject to which of the following penalties?
• Which statement is true about firms that are not SRO members?