More About FINRA
Who We Serve
FINRA serves every U.S. investor—from newlyweds planning to buy a home, parents saving for a child's college education to seniors depending on a secure retirement.
Every one of the 53 million American investing households FINRA serves has unique needs, but all rely on one thing: fair financial markets. That is why FINRA works every day to ensure investors receive the basic protections they deserve.
Every investor deserves fundamental protections when investing in the stock market. Whether Americans are investing in a 401(k) or other thrift, savings or employee benefit plan, or in a mutual fund, ETF or variable annuity, FINRA works every day to ensure that:
- anyone who sells a securities product has been officially tested, qualified and licensed
- every securities product advertisement used is truthful, and not misleading
- any securities product promoted or sold to an investor is suitable for that investor's needs
- investors receive complete disclosure about the investment product before purchase
What We Do
FINRA touches virtually every aspect of the securities business—from registering and educating industry participants to examining securities firms; writing rules; enforcing those rules and the federal securities laws; informing and educating the investing public; providing trade reporting and other industry utilities; and administering the largest dispute resolution forum for investors and registered firms.
When rules are broken, we take action—meaning we can fine, suspend or expel firms or individual brokers from the business. We frequently require firms to return money to investors who have been harmed. In this role of "cop on the beat," FINRA ensures that all investors receive the basic protections they deserve—regardless of what kind of financial product they buy or who sells it to them.
FINRA is every investor's advocate:
- When an elderly investor was overcharged as much as $1.2 million in commission fees, FINRA took action. Our investigation found that APS Financial Corporation overcharged several customers on 59 transactions, 43 of which involved the elderly investor's account. APS didn't disclose the mark-ups to the customers, and in some cases, charged fees as high as 67 percent. FINRA expelled the Texas firm and barred the firm's former president and a broker from the securities industry.
- In another case, FINRA barred a registered sales assistant from the securities industry for misappropriating nearly $750,000 from 22 vulnerable customers, some of whom were elderly or ill. FINRA also fined the assistant's employer, Citigroup Global Markets, Inc., for supervisory lapses that allowed the misconduct to continue.
- When a broker switched his elderly and unsophisticated customers in and out of mutual funds without their permission, FINRA took action. As a result of the scheme, the broker, William Bailey, received commissions on the sales charges and trading fees generated by the unauthorized trades. FINRA suspended Bailey for two years for improperly trading in customer accounts.
- When Morgan Keegan marketed and sold bond funds to investors with sales material that contained exaggerated claims and didn't accurately disclose the funds' risks, FINRA worked to ensure the investors got their money back. Morgan Keegan agreed to pay restitution of $200 million to investors who bought shares of the seven bond funds.