What Is the Financial Industry Regulatory Authority?

US Financial Industry Regulatory Authority. Founded in 2007, the US Financial Industry Regulatory Authority (FINRA) was formed by the merger of the American Securities Dealers Association (NASD's most influential self-regulatory organization for the securities industry in the United States at that time) and the New York Stock Exchange Regulatory Authority (NYSERegulation, Inc.).

U.S.Financial Regulatory Authority

The U.S. Financial Industry Regulatory Authority is a self-regulatory organization (SRO) in the US OTC market. The U.S. Financial Regulatory Authority (FINRA) is subject to the supervision of the United States Securities and Exchange Commission (SEC), similar to the Securities Association of China. It is currently the largest independent non-government securities industry self-regulatory agency in the United States. The regulatory objects mainly include 4,400 brokerage companies, 163,000 branches and 630,000 registered securities representatives (data from FINRA's official website).

The main function of the US Financial Industry Regulatory Authority (FINRA) is to strengthen investor protection and market integrity building through efficient supervision and technical support, and is mainly responsible for the trading behavior of the OTC market and the operation of investment banks. As a non-governmental organization, the existence of FINRA is also an important step in the development of the US financial market into an effective self-regulated market.

The Financial Services Regulatory Authority (FINRA), the predecessor of the National Association of Securities Dealers (NASD), was established in 1939 and is authorized and regulated by the Securities and Exchange Commission (SEC) to its member companies. In 1971, the National Association of Securities Dealers (NASD) created the National Association of Securities Dealers Automatic Quotation System (NASDAQ). In 1998, the National Association of Securities Dealers Automated Quotation System (NASDAQ) merged with the American Stock Exchange (AMEX). Two years later, (NASDAQ) separated from the American Securities Dealers Association (NASD) and became an independent agency. After the Nasdaq Automated Quotation System became independent, in 2007, under the coordination of the Securities and Exchange Commission (SEC), the members of the National Association of Securities Dealers (NASD) and the New York Stock Exchange (NYSE) merged the regulatory, enforcement and arbitration departments , Became the US Financial Industry Regulatory Authority (FINRA), and was approved by the US Securities and Exchange Commission (SEC) on July 26 of that year, and began to exert its regulatory functions. The U.S. Financial Industry Regulatory Authority (FINRA) currently employs more than 3,200 employees, with major locations in Washington, DC and New York City, and 20 local offices across the United States.

Functional responsibilities

The purpose of the US Financial Industry Regulatory Authority (FINRA) is to protect all individuals who invest in the United States, no matter what kind of financial products they invest in, from the purchase of a loan to an investment company, they can get the due protection and protection of their rights. Its regulatory scope covers all aspects of the securities industry, from registration and education-related practitioners and participants, formulating corresponding regulations and policies, implementing relevant laws and constraints, to popularizing education and investing in the public and providing trade reporting and trade reporting. Other related industry equipment. The Financial Industry Regulatory Authority issues licenses to individuals and businesses entering the industry, formulates their code of conduct, tests and assesses their degree of enforcement of regulations, and restricts companies and personnel under the supervision of the SEC. The U.S. Financial Industry Regulatory Authority (FINRA) has the power to impose fines, suspend licenses, or suspend businesses from individuals and companies that violate laws and regulations. Securities companies that are not regulated by other self-regulatory organizations (SROs) need to join the organization of the Financial Industry Regulatory Authority (FINRA) and be regulated by the Financial Industry Regulatory Authority (FINRA). Another major role of the Financial Industry Regulatory Authority is investor education. FINRA takes various forms of media promotion and seminars to help investors understand financial knowledge and familiarize themselves with basic investment tools. In addition, FINRA took over the former "NASD Investor Education Fund" and changed its name to "FINRA Investor Education Fund" to fund investor education research and development and training projects. FINRA's official website provides investors with a wealth of relevant information to help investors understand investment and avoid risks. ^[1]