Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

What role does the member professionals play in an SRO?

1. They create financial products

2. They supervise qualifications and practice of members

3. They represent investors in disputes

4. They develop policies for institutional investors

The correct answer is: They supervise qualifications and practice of members

The role of member professionals in a Self-Regulatory Organization (SRO) is primarily focused on supervising the qualifications and professional practices of its members. SROs are established to oversee and regulate the conduct of their members to ensure compliance with industry standards and regulations. This supervision is critical for maintaining the integrity and reliability of the financial markets. By ensuring that members adhere to the established standards of practice, SROs help safeguard investor interests and promote fair trading practices. While the development of financial products, representation of investors in disputes, and policy development for institutional investors are important functions within the financial industry, they typically fall outside the specific remit of an SRO member's responsibilities. Member professionals are more inclined to ensure adherence to qualifications and ethical practices rather than engaging directly in product creation or dispute representation. Thus, this supervisory role is central to the functioning of an SRO and supports the overall health of the financial market.