Financial Industry Regulatory Authority (FINRA)

The Financial Industry Regulatory Authority (FINRA) is a non-governmental organization that regulates the securities industry in the United States. FINRA is the largest independent regulator for all securities firms doing business in the United States. It is a self-regulatory organization (SRO) that is funded by the firms it regulates. FINRA is responsible for writing and enforcing rules governing the activities of broker-dealers and their associated persons, as well as providing market transparency through the publication of trade data.

History of FINRA

FINRA was created in 2007 through the consolidation of the National Association of Securities Dealers (NASD) and the member regulation, enforcement, and arbitration functions of the New York Stock Exchange (NYSE). The NASD was founded in 1939 and was the first self-regulatory organization in the securities industry. The NYSE was founded in 1792 and was the first organized securities exchange in the United States. The consolidation of the two organizations created a single, independent regulator for the securities industry.

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Summary

FINRA is the largest independent regulator for all securities firms doing business in the United States. It is a self-regulatory organization (SRO) that is funded by the firms it regulates. FINRA was created in 2007 through the consolidation of the National Association of Securities Dealers (NASD) and the member regulation, enforcement, and arbitration functions of the New York Stock Exchange (NYSE). For more information about FINRA, visit their website at https://www.finra.org/.

See Also

• Securities and Exchange Commission (SEC)
• Investment Advisers Act of 1940
• Securities Act of 1933
• Securities Exchange Act of 1934
• Financial Industry Regulatory Authority Rulebook
• Broker-Dealer
• Registered Representative
• Investment Adviser
• Investment Company Act of 1940
• Uniform Securities Act

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