FINRA


Also found in: Acronyms.

Financial Industry Regulatory Authority

A self-regulatory organization that assists the SEC in regulating financial markets, notably exchanges and companies that deal with securities. Among other duties, FINRA enforces rules, arbitrates disputes, and provides training and licensing services. Contrary to the belief of some, it is not a government agency. It was created in 2007 with the merger of the National Association of Securities Dealers and the NYSE regulatory board.

FINRA.

FINRA, the acronym of the Financial Industry Regulatory Authority, is the largest self-regulatory organization (SRO) in the United States. It writes and enforces rules governing the securities industry as well as enforcing federal securities laws.

FINRA has jurisdiction over all broker-dealers and registered representatives, and has authority to discipline firms and individuals who violate the rules. It regulates trading in stocks, mutual funds, variable annuities, corporate bonds, and futures and options contracts on securities. It also acts as the SRO for a number of securities exchanges.

FINRA reviews materials that investment companies provide to their clients and prospective clients to ensure those materials comply with the relevant guidelines. The FINRA website also provides investor education and alerts on current issues of importance to investors.

Through its BrokerCheck database, FINRA provides a resource for investors to check the credentials of people and firms.

In addition, FINRA resolves disputes between broker-dealers and their clients, through either mediation or arbitration.

FINRA was created in 2007 by the merger of NASD (formerly the National Association of Securities Dealers) and the regulatory and enforcement divisions of the New York Stock Exchange (NYSE).

References in periodicals archive ?
Thomas Gira, FINRA Executive Vice President and Head of Market Regulation, said, "The foundation for Regulation SHO compliance and the benefits it provides to investors and market integrity is that firms properly track their short positions in accordance with the rule.
The SEC approved the FINRA merger proposal on October 6, 2015, with a public comment period that ends November 3, 2015.
Having an ongoing, proactive compliance program in place, whether it is overseen in-house or by an outside compliance firm, can reduce angst before a FINRA examiner arrives, as well as help a firm maintain compliance.
FINRA estimates there are more than 15,000 individuals who have left the securities industry after being the subject of a final regulatory action and whose disciplinary history is not currently available on BrokerCheck.
For firms that execute fewer than 200 non-ATS transactions per day on average during the reporting period, FINRA would combine and report the volume for all such firms on an aggregated, non-attributed basis.
Thanks to the enthusiastic support of so many FINRA member firms, I am pleased to report that my campaign to speak for your interests as the mid-sized firm representative on the FINRA Board of Governors has been successful.
As mid-size FINRA member firms, we have only one seat on the Board of Governors allocated to representing our interests -- one voice making sure that FINRA hears and considers the vital needs of our segment of the industry.
In the upcoming action phase, FINRA will engage in its usual rulemaking process to propose any amendments to the rules based on the assessments.
In its complaint, FINRA's Enforcement Department had charged Schwab with violating FINRA rules concerning language or conditions that firms may place in customer agreements when Schwab amended its customer account agreement to include a provision requiring customers to waive their rights to bring or participate in class actions against the firm.
WASHINGTON, July 14, 2015 /PRNewswire-USNewswire/ -- The Securities and Exchange Commission (SEC) should require fuller disclosure of information to investors under the FINRA BrokerCheck Reports system and also develop a unified national disciplinary database allowing older Americans and other investors to check out the backgrounds of financial market professionals, according to a letter submitted today to the SEC Investor Advisory Committee (IAC) by the Public Investors Arbitration Bar Association (PIABA), Public Citizen, the PIABA Foundation, and the Securities Arbitration Clinic of the St.
FINRA found that one of Citigroup's trading desks employed a manual pricing methodology for non-convertible preferred securities that did not appropriately incorporate the National Best Bid and Offer (NBBO) for those securities.