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FINRA
(Financial Industry Regulatory Authority)
FINRA is the self-regulatory organization (SRO) that oversees U.S. broker-dealers, operating under SEC supervision. It licenses securities professionals (630,000 reps), writes rules, and enforces compliance through exams and disciplinary actions ($90 million in fines annually).
Key functions include administering licensing exams (Series 7, 63 etc.), running the BrokerCheck system (200 million searches annually), and operating market surveillance that detects 95% of manipulative trading. FINRA arbitrates investor disputes, awarding $40 million annually to claimants. Recent focus areas include complex products like leveraged ETFs, cybersecurity standards, and Reg BI compliance. While industry-funded, FINRA maintains independent enforcement - expelling 300+ firms and barring 2,400 individuals since 2018.
Key functions include administering licensing exams (Series 7, 63 etc.), running the BrokerCheck system (200 million searches annually), and operating market surveillance that detects 95% of manipulative trading. FINRA arbitrates investor disputes, awarding $40 million annually to claimants. Recent focus areas include complex products like leveraged ETFs, cybersecurity standards, and Reg BI compliance. While industry-funded, FINRA maintains independent enforcement - expelling 300+ firms and barring 2,400 individuals since 2018.