FINRA stands for Financial Industry Regulatory Authority, which is a non-governmental, self-regulatory organization authorized to regulate U.S. stockbrokers and broker-dealer firms. FINRA plays a critical role in ensuring the integrity of America’s financial system by making sure the broker-dealer industry operates fairly and honestly. FINRA oversees more than 624,000 brokers across the country and analyzes billions of daily market events. Some of the key functions of FINRA include:

• Enforcing rules: FINRA enforces various rules governing the operations and conduct of brokers and broker-dealer firms in the United States. FINRA has enforcement powers over the brokers and firms it regulates, including the power to levy fines and sanctions against those who violate its rules.

• Protecting investors: FINRA is dedicated to protecting investors and safeguarding market integrity in a manner that facilitates vibrant capital markets. FINRA provides resources, such as BrokerCheck, that help to protect investors. BrokerCheck is a free tool that can help you research the professional backgrounds of investment professionals, brokerage firms, and investment adviser firms.

• Regulating the industry: FINRA regulates the trading of equities, corporate bonds, securities futures, and options. FINRA oversees around 3,400 securities firms with about 150,000 branch offices, including about 612,000 registered securities professionals as of 2021.

Overall, FINRA is a key player in the financial regulatory space, and brokers and brokerage firms must be FINRA registered.