FINRA, which stands for Financial Industry Regulatory Authority, is a regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange’s regulation committee.
The Financial Industry Regulatory Authority is charged with governing business between brokers, dealers and investors. FINRA’s goal is to eliminate regulatory overlap and reduce costs through the consolidation of these two regulators.
FIRNA describes itself as an “independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly.”
According to the FINRA website, the organization:
- Provides investor education
- Develops and enforces rules governing the activities of more than 4,135 securities firms with approximately 632,050 brokers
- Examines firms for compliance with FINRA’s rules
- Promotes market transparency
Sources: Investopedia, FINRA