FINRA
The Financial Industry Regulatory Authority, the self-regulatory organization overseeing US broker-dealers and securities professionals.
What is FINRA?
FINRA (Financial Industry Regulatory Authority) is a non-governmental self-regulatory organization (SRO) authorized by Congress to regulate broker-dealers and their registered representatives in the United States. It operates under SEC oversight and writes and enforces rules governing the activities of approximately 3,500 broker-dealer firms and more than 600,000 registered securities professionals. FINRA administers licensing exams such as the Series 7 (general securities representative) and Series 63. It operates a free investor complaint database (BrokerCheck) where the public can research brokers' credentials and disciplinary history. FINRA can investigate brokers, levy fines, suspend licenses, and bar individuals from the securities industry.
Example
A FINRA-registered broker-dealer must follow suitability rules (soon replaced by Regulation Best Interest) when recommending investments to clients. If FINRA receives a complaint that a broker recommended unsuitable products to a retiree living on fixed income — such as high-risk leveraged ETFs — it can open an investigation, conduct an examination, and if violations are found, fine the firm and suspend the broker.
Source: FINRA — About FINRA