At FINRA, we’re proud of our long history of protecting investors and keeping markets fair.
In 1938, the Maloney Act amended the Securities Exchange Act of 1934 to provide for the creation of a regulatory entity that would create and enforce disciplinary rules and promote just and equitable principles of trade. This statute led to the creation of the National Association of Securities Dealers, or NASD, on August 7, 1939. NASD’s mandate was "to protect investors and the public interest, and to remove the impediments to and perfect the mechanism of a free and open market.”*
In 2007, NASD consolidated with the member regulation, enforcement and arbitration functions of the NYSE to become FINRA.
For decades, our independent regulation has played a critical role in America’s financial system. Every day we work to enforce high ethical standards, bringing the necessary resources and expertise to regulation and enhancing investor safeguards and market integrity—all at no cost to taxpayers.
Securities regulation has come a long way over the years. It has grown with the needs of investors, as well as the changing landscape of the markets and technology. FINRA has the flexibility to invest in resources that help us better protect investors like you—such as the innovative technology we use to build sophisticated surveillance systems and process extraordinary amounts of data.
Capital markets are constantly changing and becoming more complex. As the markets evolve, we’ll continue to change along with them, adapting our regulatory approach and the technology we use to detect wrongdoing and prevent harm to investors.
One thing that won’t change? Our commitment to protecting investors.
Read Chairman and CEO, Richard G. Ketchum’s message.
FINRA is the Financial Industry Regulatory Authority.
FINRA is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry.
FINRA is not part of the government. We’re an independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly.
We do this by:
Our independent regulation plays a critical role in America’s financial system—by enforcing high ethical standards, bringing the necessary resources and expertise to regulation and enhancing investor safeguards and market integrity—all at no cost to taxpayers.
Every investor in America relies on one thing: fair financial markets. That's why FINRA works every day to ensure that:
In 2013, through our aggressive vigilance, we brought 1,535 disciplinary actions against registered brokers and firms. We levied more than $65 million in fines. And we ordered more than $9.5 million in restitution to harmed investors. We also referred 660 fraud and insider trading cases to the SEC and other agencies for litigation and/or prosecution.
Learn more about what we do to protect investors and ensure market integrity.
3,400 employees dedicated to market integrity and investor education
20 offices across the U.S.
660 fraud cases referred for prosecution in 2013
$74.5M in fines and restitution levied against fraudulent traders in 2013
6 billion share trades monitored every day
634,505 brokers under FINRA's supervision