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The Financial Industry Regulatory Authority (FINRA) was established in 2007 through the merger of the National Association of Securities Dealers (NASD, the most influential securities industry self-regulatory organization in the United States at the time) and the New York Stock Exchange Regulation, Inc. It is committed to protecting investors and maintaining market integrity in order to promote a vibrant capital market. About FINRA - The predecessor of the Financial Industry Regulatory Authority (FINRA), the National Association of Securities Dealers (NASD), was established in 1939. It is authorized and supervised by the Securities and Exchange Commission (SEC). In 1971, the National Association of Securities Dealers (NASD) founded the National Association of Securities Dealers Automated 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 National Association of Securities Dealers (NASD) and became an independent organization.
- After the independence of the NASDAQ automatic quotation system, in 2007, under the coordination of the US Securities and Exchange Commission (SEC), the member supervision, execution and arbitration departments of the National Association of Securities Dealers (NASD) and the New York Stock Exchange (NYSE) merged to become the US Financial Industry Regulatory Authority (FINRA), and on July 26 of that year, it was approved by the US Securities and Exchange Commission (SEC) and began to perform its regulatory functions. Currently, the US Financial Industry Regulatory Authority (FINRA) has more than 3,200 employees, with the main work locations in Washington, DC and New York City, and 20 local offices across the United States.
- As the self-regulatory organization (SRO) of the U.S. over-the-counter securities market, the U.S. Financial Industry Regulatory Authority (FINRA) is regulated by the U.S. Securities and Exchange Commission (SEC). Similar to China's Securities Association, it is the largest independent non-governmental securities industry self-regulatory organization in the United States. Its regulatory targets mainly include 4,400 brokerage firms, 163,000 branches and 630,000 registered securities representatives (data from FINRA's official website).
- The main function of the U.S. Financial Industry Regulatory Authority (FINRA) is to strengthen investor protection and market integrity through efficient supervision and technical support, and is mainly responsible for the trading behavior of the over-the-counter (OTC) market and the operation of investment banks. As a non-governmental organization, the existence of FINRA is also an important step for the U.S. financial market to develop into an effective self-regulated market.
Functional Responsibilities Its regulatory scope covers all aspects of the securities industry, from registering and educating relevant practitioners and participants, formulating corresponding regulations and policies, enforcing relevant laws and restrictions, to popularizing education for the public involved in investment and providing trade reporting and other related industry equipment. The Financial Industry Regulatory Authority issues licenses to individuals and companies entering the industry, formulates their codes of conduct, tests and evaluates their compliance with regulations, and regulates companies and personnel under the supervision of the SEC. The Financial Industry Regulatory Authority (FINRA) has the power to impose fines on companies and individuals that violate laws and regulations, suspend licenses or revoke them from the industry. If securities companies are not regulated by other self-regulatory organizations (SROs), they must 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 adopts various forms such as media publicity and seminars to help investors understand financial knowledge and become familiar with basic investment tools. In addition, FINRA took over the former "NASD Investor Education Fund" and renamed it "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. The purpose of the establishment of the Financial Industry Regulatory Authority (FINRA) Protect all individuals who invest in the United States. No matter what financial product they invest in, from taking out loans to buy houses to investing in companies, they can all get the due rights protection and interest guarantee.
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