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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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).

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
As a member of FINRA's Regional Committee, Jason will serve an important role in the self-regulatory process by, among other things, alerting FINRA to industry trends that could present regulatory concerns and consulting with FINRA regarding proposed policies and rule changes.
FINRA said the changes to the advisory committees builds on enhancements to FINRA's committee structure announced in November.
FINRA's regulatory chief, Susan Axelrod, told Investment Advisor that while there's not "one big-bang" item in the priorities, the report includes a "number of changes that [Cook] has talked about -- training examiners, getting more information to the industry through the first-ever exam findings report."
In determining the appropriate monetary sanction, FINRA considered J.P.
The Fieros questioned the authority of Finra to enforce the fine in the court.
In addition, FINRA also ordered firms and their representatives to pay about $52 million in restitution, a record sum for the agency.
(FINRA does not specify the type of annuity at issue, but both brokers had a Series 6 license, which permitted them to sell investment products such as mutual funds, variable annuities and other premium-funded variable insurance contracts.)
Finra has not alleged any wilful or fraudulent conduct by the firm, it added.
The rules apply to FINRA member firms and associated persons and entities, including life insurance agents who sell variable life and variable annuity products.
(3) FINRA serves an invaluable regulatory role in protecting the investing public.