About FINRA

FINRA is a self-regulatory organization for U.S. broker-dealers that is responsible under federal law for supervising our member firms. Since the 1930s, under the oversight of the Securities and Exchange Commission (SEC), we have pursued our mission:

• writing and enforcing rules that govern the activities of our member firms and their representatives
• examining our member firms to ensure compliance with federal law and FINRA’s rules
• identifying manipulation and other misconduct by monitoring billions of daily market events and leveraging innovative technology
• returning money to harmed customers whenever possible, and barring from FINRA membership those who violate the rules, where appropriate
• administering thousands of qualification exams each year to ensure anyone who sells a securities product is qualified and licensed to do so
• empowering investors with knowledge, information and skills for financial success
• engaging with member firms to identify and address emerging risks to investors and markets before they cause harm
• operating trade reporting facilities to provide transparency to market participants in the fixed income and equity markets
• operating a dispute resolution forum for investors, member firms and their representatives to provide a fair and efficient venue to handle securities-related disputes

How We Are Organized and Funded

FINRA is a private not-for-profit membership organization that is responsible under federal law for supervising our member firms. FINRA’s Board of Governors, our governing body, is comprised of industry governors and public governors, and our operations are funded by member fees, not taxpayer dollars. As a self-regulatory organization, or SRO, we are registered with the SEC and perform our work under the supervision of the SEC, but we are not part of the government. As a membership organization, FINRA’s work is informed by our member firms, with 13 advisory committees that provide feedback on rule proposals, regulatory initiatives and industry issues.

The SRO model for broker-dealers has a long history, developing in the United States over more than two centuries. This well-established model enriches our regulatory program while giving us the authority to carry out our mission. It enables FINRA to engage with the industry, investors, and other key stakeholders to quickly adapt our oversight to changing markets, as well as to develop tools and resources that enhance industry practices and aid investors. This engagement results in stronger, more informed regulation. For more information, see How FINRA Serves Investors and Members.