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FINRA
A self-regulatory organization overseeing U.S. broker-dealers and their registered representatives.
FINRA (Financial Industry Regulatory Authority)
FINRA is a private self-regulatory organization authorized by Congress to oversee broker-dealers in the United States.
What FINRA does
- Licenses: Administers qualification exams (Series 7, Series 63, etc.)
- Regulates: Sets rules for broker-dealer conduct
- Enforces: Investigates violations and disciplines firms/individuals
- Educates: Provides investor education resources
BrokerCheck
FINRA's free tool at brokercheck.finra.org lets you research:
- Any broker's registration status
- Employment history
- Customer complaints and regulatory actions
- Qualifications and licenses
Key rules FINRA enforces
- Suitability: Recommendations must be appropriate for the investor
- Best execution: Firms must get the best available price for client orders
- Margin requirements: Minimum equity requirements for leveraged accounts
- Anti-money laundering: Firms must have AML compliance programs
Difference from the SEC
The SEC is a government agency with broad authority. FINRA is an industry self-regulator focused specifically on broker-dealers and their employees.
Key Takeaways
- Context matters when interpreting any financial metric.
- Combine multiple data points for informed decisions.
- Continue learning to build investment knowledge.
Quick Reference
Category
Regulatory
Difficulty
Beginner
Reading Time
1 min
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Learn More
Where You'll See This
This concept appears throughout stock detail pages and financial data.