Читать книгу The Investment Advisor Body of Knowledge + Test Bank - IMCA - Страница 23

FINRA is the largest independent, nonprofit self-regulatory organization (SRO) registered under the SEC for all securities firms doing business in the United States. It writes and enforces rules related to federal securities law to protect and educate investors. FINRA examines firms and can punish individuals and firms through fines, suspensions, and up to and including expulsion from the securities industry.

All brokers must be licensed and registered by FINRA, pass qualification exams, and satisfy continuing-education requirements. For the public's protection, FINRA also discloses any disciplinary action it takes against registered advisors.

Most advertisements and marketing material used by members must be filed with FINRA before an advisor or firm can distribute them to the public. Further, FINRA requires not only that the sales material be truthful, but that the security sold is suitable to the individual investor and that the investor receives complete disclosure about an investment before purchase. When problems arise, FINRA also administers the arbitration typically required as the starting point to begin to resolve disputes among investors and its members.

FINRA replaced the National Association of Securities Dealers (NASD) when its rulemaking and enforcement activities were consolidated with those of the enforcement division of the New York Stock Exchange in 2007.

Thus, FINRA also monitors securities exchanges for suspicious activities and provides educational materials freely available to the public.