FINRA
The self-regulatory organization overseeing broker-dealers.
What is FINRA?
The Financial Industry Regulatory Authority writes and enforces rules for broker-dealers and registered representatives, administers the licensing exams, runs arbitration, and operates BrokerCheck. It is a self-regulatory body under SEC oversight, not a government agency.
FINRA: a worked example
The Series 7 exam is administered by FINRA.
More terms in Regulation & Professional Duty
Fiduciary Duty
A legal obligation to act in the client's best interest.
Suitability Standard
A recommendation must be appropriate given the client's profile.
Regulation Best Interest (Reg BI)
SEC rule requiring broker-dealers to act in a retail client's best interest.
Registered Investment Adviser (RIA)
A firm registered to give advice for a fee, holding fiduciary duty.
Broker-Dealer
A firm that executes trades as agent (broker) or principal (dealer).
Securities and Exchange Commission (SEC)
The federal agency regulating securities markets.
SIPC
Insurance against broker failure - not against investment losses.
Securities Act of 1933
The 'truth in securities' law governing new issues.