What is FINRA & SEC?

The Financial Industry Regulatory Authority (FINRA) handles the licensing and regulation of broker-dealers. FINRA is a not-for-profit entity that is not part of the government. The Securities and Exchange Commission (SEC) is a government organization that is meant to protect investors and ensure the integrity of the securities market.

What does FINRA stand for?

The Financial Industry Regulatory Authority (FINRA) is an independent, nongovernmental organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States. Its stated mission is "to safeguard the investing public against fraud and bad practices." It is considered a self-regulatory organization.

What does FINRA do?

The Financial Industry Regulatory Authority (FINRA) writes and enforces rules that govern registered brokers and broker-dealer firms in the United States. FINRA also administers the qualifying exams for securities professionals. FINRA provides resources, such as BrokerCheck, that help to protect investors.