Читать книгу Financial Regulation and Compliance - Kotz H. David - Страница 12

FINRA is the only registered national securities association and has regulatory oversight of all securities broker-dealers doing business with the public in the United States. FINRA's mission is to safeguard the investing public against fraud and bad practices. All brokers must be licensed and registered by FINRA, pass qualification exams, and satisfy continuing education requirements. FINRA conducts routine examinations, as well as inquiries based on investor complaints and suspicious activity. It also reviews all broker advertisements, websites, sales brochures, and other communications to make sure brokers present information in a fair and balanced manner. FINRA also monitors trading in the U.S. stock markets.19

FINRA has an enforcement program that brings discipline where it believes that investors have been harmed. FINRA investigations are non-public and confidential, and firms and individuals are entitled to be represented by counsel. To conduct its investigations, FINRA requests documents and takes sworn testimony from firms and associated persons. FINRA may also contact customers and other individuals who are not within FINRA's jurisdiction to learn about the member firms' activities and who may provide information voluntarily to FINRA. FINRA then analyzes the evidence it obtained, reviews the applicable law, and makes a preliminary determination of whether or not a violation appears to have occurred. If FINRA determines that rules have been violated, it will resolve whether the conduct merits a recommendation of formal disciplinary action. If the violation is of a minor nature where there is an absence of customer harm or detrimental market impact, the matter may be settled with an informal disciplinary action. Otherwise, FINRA will proceed through a more formal route by commencing a full-blown Enforcement proceeding. In 2014, FINRA brought 1,397 disciplinary actions against registered individuals and firms, levied fines totaling more than $134 million, and ordered restitution of more than $32.3 million to harmed investors.20

FINRA also provides investor education through the implementation of programs like BrokerCheck, which gives investors a quick way to check a broker's disciplinary and professional background. In FINRA's Market Data Center, investors can find information and data on equities, options, bonds, and mutual funds.21 FINRA's Trade Reporting and Compliance Engine (“TRACE”) system helps investors monitor their bond investments by providing them with timely and accurate pricing information for corporate and Agency bonds.22 FINRA also has a dispute resolution forum, which is the largest in the country for the securities industry, handling nearly 100 percent of securities-related arbitrations and mediations from more than 70 hearing locations – including at least one in all 50 states, London, and Puerto Rico.23