Definition
FINRA (Financial Industry Regulatory Authority) is a non-governmental organization that regulates broker-dealers and registered representatives in the United States. As a self-regulatory organization (SRO), FINRA creates and enforces rules, examines firms, administers licensing exams (Series 7, etc.), and disciplines violators. FINRA operates BrokerCheck, allowing investors to research brokers' backgrounds. While not a government agency, FINRA is overseen by the SEC. It aims to protect investors and ensure market integrity in the brokerage industry.
Example
Before working with a financial advisor, investors can check BrokerCheck on FINRA's website to see their registration status, exam history, and any disciplinary actions or customer complaints.
FAQ
What is FINRA?
The Financial Industry Regulatory Authority, a self-regulatory organization for broker-dealers.
Why is FINRA important?
FINRA helps investors evaluate regulatory and make more informed decisions.