FINRA is a not-for-profit self-regulatory organization that oversees the U.S. securities industry, operating under the supervision of the Securities and Exchange Commission. It writes and enforces rules governing broker-dealer conduct, examines firms for compliance with federal securities laws, and monitors markets for manipulation and misconduct. With more than 3,600 employees and over 85 years of operating history, FINRA currently regulates more than 3,250 brokerage firms and over 625,000 registered representatives across the United States.
The organization's work spans several distinct functions. Its market surveillance infrastructure monitors billions of market events to detect misconduct. It operates what it describes as the largest dispute resolution forum for securities disputes in the country, handling arbitration and mediation between investors and industry participants. It also provides investor-facing tools, including BrokerCheck, which allows the public to research the backgrounds and credentials of brokers and firms.
FINRA is pursuing a modernization initiative called FINRA Forward, aimed at updating its oversight approach and operational capabilities. Its work has expanded to include education and resources on emerging areas such as crypto assets and blockchain technology.
As a not-for-profit, FINRA is funded by the industry it regulates rather than by government appropriations or investor fees. Its stated mission is to ensure that U.S. capital markets operate fairly and that investors can participate with confidence.
