Office address: 1700 K St NW, Washington, DC 20006
Website: finra.org
Year established: 2007 Company type: non-government organization
Employees: 4,200+
Expertise: securities regulation, broker-dealer supervision, market surveillance, enforcement and disciplinary actions, investor education, dispute resolution and arbitration, trade reporting transparency, cybersecurity and fraud detection
Parent company: N/A Key people: Robert Cook (CEO); Robert Colby (chief legal officer); Todd Diganci (CFO); Marcia Asquith (EVP); Ornella Bergeron, Denise Dombay, and Maureen Delaney (SVPs)
Financing status: N/A
The Financial Industry Regulatory Authority (FINRA) is a Washington-based self-regulatory body that supervises more than 3,200 broker-dealers. It enforces rules, monitors trading, and runs tools such as TRACE, BrokerCheck, and the consolidated audit trail. In 2024, it posted $99 million net income and unveiled a crypto education program.
FINRA was officially formed in 2007 through a strategic merger. The National Association of Securities Dealers (NASD) joined forces with the New York Stock Exchange's (NYSE) regulatory division to operate as one.
This created a unified, independent regulator for America's securities industry. The move modernized oversight for a changing market and strengthened investor protections nationwide.
FINRA's story actually began decades earlier, in an era of economic recovery. The NASD registered with the Securities and Exchange Commission (SEC) in 1939. This registration formalized what traders had been doing informally for generations.
Congress had established the SEC in 1934 following the devastating market crash of 1929. Two years later, lawmakers passed the Maloney Act to regulate off-exchange securities trading more effectively.
The NASD spent 68 years evolving to match the changing securities landscape and technology. By the early 2000s, fragmented regulatory oversight became increasingly inefficient for a modern industry.
The 2007 merger created the Financial Industry Regulatory Authority by combining the NASD's institutional knowledge with the NYSE's regulatory expertise. This unified regulator now oversees all brokers and firms across US markets comprehensively.
As 2024 closed, the Financial Industry Regulatory Authority issued substantial penalties against three major firms. These companies faced settlements for sending inaccurate trade information and filing flawed Focus reports. Year-end enforcement actions let both regulators and firms resolve lingering compliance issues cleanly.companies faced settlements for sending inaccurate trade information and filing flawed Focus reports. Year-end enforcement actions let both regulators and firms resolve lingering compliance issues cleanly.
Into 2025, FINRA's Regulatory Oversight Report highlighted three major threats to the industry. Cybersecurity vulnerabilities from third-party technology providers topped concerns alongside AI compliance challenges. Investment fraud schemes also continue to shift as bad actors devise new ways to deceive clients.
FINRA regulates broker-dealers and investment firms in America by combining enforcement with educational resources to protect investors and maintain market integrity:
The Financial Industry Regulatory Authority also addresses emerging threats like cybersecurity risks and artificial intelligence compliance challenges. The organization remains focused on supporting a healthy, trustworthy securities market for all participants.
The Financial Industry Regulatory Authority reports that investor protection and market stability form the core of its mission. The regulator values its employees and delivers market-rate compensation with benefits such as:
The Financial Industry Regulatory Authority also says that it does not discriminate in hiring based on disability, veteran status, and other protected classifications under federal, state, and local law. It complies with 41 CFR regulations protecting disabled individuals and veterans.
Robert W. Cook is the Financial Industry Regulatory Authority's president and CEO, with prior experience directing the SEC's trading and markets division. Before FINRA, Cook was a partner at a law firm in Washington. His education includes a JD from Harvard Law School, a master's degree from the London School of Economics, and an undergraduate from Harvard.
The Financial Industry Regulatory Authority's leadership team includes the following key executives:
These executives manage the Financial Industry Regulatory Authority's daily operations while upholding the organization's core mission to protect investors.
FINRA launched a targeted probe into broker-dealers underwriting small foreign company IPOs to combat pump-and-dump schemes. The regulator required detailed supervisory procedures and due diligence records for offerings between January 2023 and September 2025. This enforcement action positions the Financial Industry Regulatory Authority as a proactive market protector against cross-border securities fraud.
The organization also penalized First Trust Portfolios, an ETF provider, in 2025 with a $10 million settlement for excessive gifts to broker-dealer representatives. The violations spanned from 2018 through February 2024 and included luxury courtside tickets and concert events. This enforcement action illustrates FINRA's commitment to preventing investor harm through strict non-cash compensation oversight.
UBS AG, Switzerland's biggest bank, will pay $12 million to resolve Financial Industry Regulatory Authority claims that a brokerage unit allowed millions of short-sale orders to be placed without reasonable grounds to believe that the securities could be delivered.
The following is an edited version of a speech given by Richard G. Ketchum, chairman and chief executive of the Financial Industry Regulatory Authority Inc., Oct. 13 at the Security Traders Association's annual conference in Palm Beach, Fla.
SEC Commissioner Elisse Walter picked a tough crowd before which to try to drum up support for a draft SRO bill for investment advisers proposed by House Financial Services Committee Chairman Spencer Bachus.
A draft of a bill that would establish a self-regulatory organization for investment advisers was released today by House Financial Services Committee Chairman Spencer Bachus, R-Ala., in advance of Tuesday's hearing by the House Capital Markets Subcommittee.
Shorris signs on with indie B-D; 'invaluable addition'
Onetime Barron's hotshot adviser files suit against firm; also suing local regulators, including new NASAA president
When advisers and clients discuss what's happening in Washington, it tends to be an outlet for venting about political gridlock
Investment advisers should get set for higher compliance costs — as well as a self-regulatory organization, said Chet Helck, chief operating officer for Raymond James Financial Inc.
In their biennial tracking of the compliance violations of small investment advisers, state regulators have found a slight uptick in deficiencies per adviser, with about 45% of advisers found to have at least one books-and-records violation
A U.S. Circuit Court of Appeals today ruled that the Financial Industry Regulatory Authority Inc. has no right to collect fines through court judgments
Broker-dealer agrees to pay $200K to settle Finra allegations it sold unsuitable private placements; SEC charges still pending
California carrier claims Finra rules make reps employees of their broker-dealers; 'Where does this stop?'
Gloves off early as Fischer, Sobel engage in a little smackdown; 'rent-a-finop'
Bank of America Corp.'s Merrill Lynch unit will pay $1 million to resolve claims that supervisory failures enabled a Texas-based representative to operate a Ponzi scheme using a company account.
Private placements strike again: Another independent broker-dealer that sold high-risk Reg D offerings appears to be struggling. This week, CapWest Securities' management filed a report with the SEC stating grave concerns about the B-D's future.
