A Self-Regulatory Organization (SRO) is a non-governmental entity that creates and enforces rules and standards for its members, typically within a specific industry. SROs aim to promote ethical practices, enhance transparency, and protect the interests of the public and their members. Examples of SROs include the Financial Industry Regulatory Authority (FINRA) and the National Association of Securities Dealers (NASD). SROs operate under the authority granted by the government but function independently. They often have the power to impose penalties, conduct audits, and provide training to ensure compliance with industry standards. This self-regulation helps maintain trust and integrity within the industry.