A self-regulatory organization charged with rulemaking authority over municipal securities dealers and municipal advisors.
Financial Industry Regulatory Authority (“FINRA”)
A non-governmental entity that oversees and regulates a portion of the federal securities industry. FINRA was created in 2007 when the regulatory operations of the New York Stock Exchange and the National Association of Securities Dealers, Inc. merged to form one self-regulatory organization (“SRO”), thereby consolidating regulatory, investigatory, rule-writing and enforcement responsibility into one organization. As an SRO, FINRA polices its members to prevent fraud and other violations by testing, qualifying and licensing individuals selling and dealing Securities, ensuring the accuracy of the advertisement of Securities and providing complete disclosure with respect to potential investments. FINRA is empowered to enforce its own rules, federal securities laws and the rules of other federal agencies, such as the MSRB. FINRA also refers cases of fraud and other violations to the SEC and other organizations. Furthermore, brokers, dealers and municipal Securities dealers that engage in municipal Securities transactions must be members of FINRA.
Dive Deeper on State Law Matters
Learn more about the various aspects of state laws and how they intersect with municipal securities.
Federal agency that oversees and regulates the securities industry and aims “to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation.”