Newsletter Signup

Search Our Blog

What is FINRA? Part 1 – FINRA’s Mission

By Jonah A. Toleno of Shustak Reynolds & Partners, P.C. posted on Monday, July 29, 2019.

WHAT IS FINRA?

FINRA (the Financial Industry Regulatory Authority), formerly known as the National Association of Securities Dealers (NASD), is a self-regulated organization (“SRO”) that engages in multiple functions in the financial services and securities industry. Our firm represents entities and individuals in varying capacities before FINRA. Many of our clients have an understanding of FINRA’s functions based on their individual experience with the organization. But not all who encounter FINRA are aware of its role, functions, or purpose. The following is the first of a series of posts explaining the various activities and functions in which FINRA regularly engages.

FINRA’S MISSION

FINRA’s stated mission is to “safeguard the investing public against fraud and bad practices.” [1] It states on its website that it “works every day to ensure that

-          Every investor receives the basic protections they deserve

-          Anyone who sells a securities product has been tested, qualified and licensed

-          Every securities product advertisement used is truthful, and not misleading

-          Any securities product sold to an investor is suitable for that investor’s needs

-          Investors receive complete disclosure about the investment product before purchase.”

FINRA also states it has a “dual mission of investor protection and market integrity.”[2]

Stay tuned for upcoming posts on how FINRA pursues its mission, what activities it conducts in the name of investor protection and market integrity, and the issues that can arise when these mission objectives must be balanced against the ability of FINRA-licensed financial advisors and registered representatives to make an earnest living advising investors. It gets interesting, to say the least!

Our firm focuses on representing individuals and firms affected by FINRA’s oversight, including financial advisors, brokers, investment advisors, financial services firms and investment advisory firms, and defrauded investors seeking to recover investment funds. If you have an investment, employment, trade secret, or broker transition situation you’d like to discuss with us, give us a call at (619) 696-9500 and look us up at https://www.shufirm.com/.

Partner Jonah A. Toleno is based in our San Diego, California office. She practices in securities and financial services law and acts as trial counsel and outside corporate counsel for numerous financial, business, and individual clients. She can be reached at (619) 696-9500 or [email protected] with questions.



Share This Article linkedin