What is FINRA?
FINRA stands for the Financial Industry Regulatory Authority. It is an independent, non-profit organization that regulates securities firms doing business in the United States. FINRA oversees more than 4,000 brokerage firms, and its mission is to protect investors and maintain the integrity of the securities market.
Key takeaways
- FINRA is an independent, non-profit organization that regulates securities firms doing business in the United States.
- Its mission is to protect investors and maintain the integrity of the securities market by registering and licensing securities firms and professionals, creating and enforcing rules, conducting exams and investigations, and disciplining firms and individuals who violate securities laws.
What does FINRA do?
FINRA regulates all aspects of the securities industry, including brokerage firms, brokers, and securities transactions. Some of its responsibilities include:
- Registering and licensing securities firms and professionals
- Creating and enforcing rules to ensure fair and ethical business practices
- Conducting exams and investigations to ensure compliance with regulations
- Disciplining firms and individuals who violate securities laws
Why is FINRA important?
FINRA plays a critical role in protecting investors and maintaining the integrity of the securities market. By regulating securities firms and professionals, FINRA helps to ensure that investors have access to fair and transparent markets and that securities transactions are conducted in a manner that is consistent with the law.