Is FINRA a government agency?

FINRA is not a government entity; it is considered a self-regulatory organization. However, it is overseen by the Securities and Exchange Commission, or SEC, which is a government agency. The roots of FINRA come from two organizations: the National Association of Securities Dealers, or NASD, and the New York Stock Exchange, or NYSE.

What is the difference between SEC and FINRA?

The SEC was created in the 1930s during the Great Depression as a way to regulate the financial markets and protect investors. It has a large scope that includes all financial and business activity in the U.S. FINRA, on the other hand, is a non-governmental organization that is overseen by the SEC and focuses on regulating brokers.

Does FINRA have a Broker Check?

For investors who are shopping for a broker or want to check up on their current one, FINRA maintains BrokerCheck, a searchable database of brokers, investment advisors, and financial advisors. BrokerCheck includes certifications, education, and any enforcement actions.