List of Brokers with FINRA Regulation

Being regulated by FINRA (Financial Industry Regulatory Authority, Inc.) means operating under the standards of a US financial regulator. It is a self-regulatory organization (SRO) founded in 2007 as a consolidation of the member regulation, enforcement, and arbitration operations of the New York Stock Exchange, NYSE Regulation, Inc., and NASD (National Association of Securities Dealers Inc.).

Brokers operating under FINRA's regulation are expected to appear for the qualifying exams that aim to test their capability in selling a wide range of products in securities, insurance, and annuities. Brokers that can qualify with higher grades without misrepresenting any facts and ensuring fair competition will be awarded valid certificates.

Another FINRA's rule is for the brokers to clearly state the risks of financial markets and their products. It is also the duty of a broker to inform clients about the potential losses in investing.

To protect investors by helping the sustainability of United States securities industry in a fair and honest manner. FINRA could provide regulatory oversight over all public securities firms. The institutuion gives licenses and admits firms to the industry, writes rules to govern their behavior, examines them for regulatory compliance, and is sanctioned by the SEC to ensure that its member firms comply with federal securities laws and FINRA's rules.

Furthermore, FINRA could provide professional training and licensing, arbitration and mediation, as well as market regulation by contract for the New York Stock Exchange, the NASDAQ Stock Market, Inc., the American Stock Exchange LLC, and the International Securities Exchange, LLC. FINRA also helps to educate and arranges examinations to industry professionals.

FINRA has the authority to conduct regulatory exams of its member firms periodically. In fact, its annual Regulatory and Examinations Priorities Letter could largely impact broker-dealers and their affiliated companies.

Although entirely independent of any Government agency, FINRA works according to the guidelines issued by the SEC. It can work with the SEC and the US Congress to create new laws, amend existing policies, and implement regulations.

FINRA operates out of funds collected from membership fees and fines. Since its establishment, FINRA has managed to collect more than $200 million in fines and restitutions.

The agency is highly involved in the investigations of financial scams and other misconducts. It has the right to invoke any licenses of a member who is found violating FINRA's policies.