FINRA (Financial Industry Regulatory Authority) is a non-governmental organization that regulates the securities industry in the United States. It is responsible for the licensing and oversight of broker-dealers and their associated personnel.
FINRA, or the Financial Industry Regulatory Authority, is a non-profit organization that regulates the securities industry in the United States. It is the largest independent regulator for all securities firms doing business in the United States. FINRA is overseen by the U.S. Securities and Exchange Commission (SEC) and is responsible for writing and enforcing rules governing the activities of broker-dealers, as well as providing market transparency and investor protection.
FINRA was created in 2007 as a result of the consolidation of the National Association of Securities Dealers (NASD) and the New York Stock Exchange (NYSE) regulatory functions. The organization is funded by fees collected from its member firms, which include broker-dealers, investment advisors, and other financial services firms.
FINRA’s primary mission is to protect investors by ensuring that the securities industry operates fairly and honestly. To accomplish this, FINRA develops and enforces rules that govern the activities of its member firms. These rules cover a wide range of topics, including sales practices, advertising, customer protection, and financial responsibility. FINRA also provides market transparency by collecting and disseminating market data, such as price and volume information.
FINRA also plays an important role in investor education. The organization provides resources and information to help investors make informed decisions about their investments. FINRA also works to educate investors about the risks associated with investing and provides resources to help investors avoid fraud.
FINRA is an important part of the U.S. financial system. By providing market transparency and investor protection, FINRA helps to ensure that the securities industry operates fairly and honestly. By providing resources and information to help investors make informed decisions, FINRA helps to protect investors from fraud and other risks associated with investing.