SIE Knowledge of Capital Markets Practice Question 2

Correct Answer: D

Explanation:

D: Promoting public knowledge of investment principles best describes the role of self-regulatory organizations (SROs). Choice A is not a primary role of SROs, although SROs may assist the public in having the facts that would help them apply investment principles. Choice B is not a significant role of SROs, although the Anti-Money Laundering law is intended to reduce, or even prevent, the laundering of terrorist money through investment transactions. Choice C may partly be a result of some activity by SROs, but it is not an absolute mandate for SROs.