FINRA, also known as the Financial Industry Regulatory Authority, is an independent self-regulatory organization (SRO) for the financial industry in the United States. It was created in 2007 through the consolidation of the National Association of Securities Dealers (NASD) and the regulatory functions of the New York Stock Exchange.
FINRA is responsible for overseeing and regulating all securities firms and brokers doing business in the United States. This includes enforcing rules and regulations related to trading, advertising, disclosure, and customer protection. FINRA also administers licensing exams and enforces ethical standards for brokers and other financial professionals.
One of the primary functions of FINRA is to protect investors by ensuring that securities transactions are conducted fairly and honestly. To this end, FINRA sets and enforces rules governing the conduct of brokers and other financial professionals. FINRA also provides education and resources to investors on how to make informed investment decisions.
FINRA is funded by fees paid by its member firms and from fines collected for rule violations. It is overseen by the Securities and Exchange Commission (SEC), but operates independently.
Overall, FINRA plays a crucial role in regulating the financial industry in the United States and promoting investor protection. Its rules and regulations are instrumental in ensuring a fair and orderly market for securities trading, which benefits both investors and the industry as a whole.
FINRA
Financial Term
FINRA, also known as the Financial Industry Regulatory Authority, is an independent self-regulatory organization (SRO) for the financial industry in the United States. It was created in 2007 through the consolidation of the National Association of Securities Dealers (NASD) and the regulatory functions of the New York Stock Exchange.
FINRA is responsible for overseeing and regulating all securities firms and brokers doing business in the United States. This includes enforcing rules and regulations related to trading, advertising, disclosure, and customer protection. FINRA also administers licensing exams and enforces ethical standards for brokers and other financial professionals.
One of the primary functions of FINRA is to protect investors by ensuring that securities transactions are conducted fairly and honestly. To this end, FINRA sets and enforces rules governing the conduct of brokers and other financial professionals. FINRA also provides education and resources to investors on how to make informed investment decisions.
FINRA is funded by fees paid by its member firms and from fines collected for rule violations. It is overseen by the Securities and Exchange Commission (SEC), but operates independently.
Overall, FINRA plays a crucial role in regulating the financial industry in the United States and promoting investor protection. Its rules and regulations are instrumental in ensuring a fair and orderly market for securities trading, which benefits both investors and the industry as a whole.