Financial Industry Regulatory Authority
The Financial Industry Regulatory Authority ( FINRA ) is the licensing authority in the United States primarily responsible for the supervision of persons involved in the securities industry. The Securities and Exchange Commission ( SEC short ) delegated this responsibility to FINRA. FINRA is a self -regulatory organization (Self Regulatory Organization, short SRO ) and is therefore no direct authority of the government. Your seat is Washington, D.C.
FINRA is a merger of the National Association of Securities Dealers (NASD ), the management authority of the New York Stock Exchange ( NYSE) and NYSE regulatory authority. The transaction was finally completed on 26 July 2008.
All companies that deal in securities that are not regulated by another SRO, such as the Municipal Securities Rulemaking Board, short MSRB must be a member company of the FINRA. Even persons who are licensed to act publicly in securities are known as registered representatives.
The regulation of the securities industry intended for all persons who work in the securities industry to maintain ethical practices, which are in the best interest of consumers. To enforce this, the FINRA has the right against the member companies and registered sales representatives to impose fines, which have broken the rules. To this end, FINRA is very useful for the industry because it builds trust in public and represent their interests. Anyway, the sole funding of FINRA afforded by the fines and fees payable to the member companies. This circumstance is criticized about the fact that this represents an incentive for the FINRA is created to a company to impose fines for all sorts of things, and only for the already incurred costs of investigation, although no serious injuries were revealed.