Question

Self-regulatory organizations play and important role in the financial planning industry because:

		a.They provide consumers with protection against fraud.
		b.They keep comprehensive and up-to-date lists of financial planners available to consumers.
		c.They prevent the government from taking over the industry.
		d.They band together to influence legislation on behalf of consumers.

Answer 1

Ans. Self regulatory organization play an important role in financial planning industry because

a) They provide consumer with protection against fraud.

*A self regulatory organization is a non government organization which has a power to create and enforce professional regulation and standards. In case of financial planning industry, the priority to protect the consumers against fraud by establishing rule, regulation and set standard of procedures.