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.
Low trading volume, credit crunch put firms in regulator's sights
The Securities and Exchange Commission's warning to The Charles Schwab Corp. that it could face civil charges over two fixed-income mutual funds may have a direct effect on current and looming legal actions from investors over losses suffered in the funds.
This year, while I was organizing a mission trip to Mississippi for teens and adults, I sent out weekly e-mails with up-dates on our travel plans.
United Equity Securities LLC filed with the Financial Industry Regulatory Authority Inc. on Aug. 12 to terminate its status as a broker-dealer.
Selling private placements has turned into a disaster for some independent broker-dealers.
Morgan Stanley Smith Barney LLC has lost a $3 million producing team of veteran Smith Barney brokers to rival J.P. Morgan Securities LLC.
Finra is playing hardball with a broker-dealer that recently lost a securities arbitration, according to the chief executive of the small broker-dealer that's battling with the regulator.
Another small broker-dealer has been shut down, with this one owing $1.2 million in damages and legal fees imposed on it in a recent arbitration decision.
The Charles Schwab Corp. and Charles Goldman have agreed to meet with a private mediator next month to discuss the former executive vice president's demand for $736,000 in severance pay following his dismissal in 2008 as head of the firm's RIA business.
The suit is one of several arising between Edwards and its successor firms and Stifel as a number of Edwards brokers deserted ship in the wake of the 2007 takeover of Edwards by Wachovia Securities LLC.
Charles Schwab Corp. and former executive vice president Charles Goldman agreed to meet with a private mediator next month to discuss $736,000 in severance pay he is seeking following his dismissal in 2008.
The cost of liability insurance is expected to increase up to 20% at some broker-dealers in response to rising arbitration claims by investors after the market crash.
Charges could lead to loss of firm's Finra registration, source says
Inability to meet Finra's net- capital requirements will force more small and independent broker- dealers to shut down this year.
Corporate-governance experts think that seven proposals designed to make Finra disclose more information and give members a say on executive compensation may never be implemented — even though 67% of Finra member firms that participated in the vote approved them.
