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.
The restitution settles Finra charges that the firm recommended Class C shares with ongoing fees when more affordable Class A shares were available.
After a stint as chief compliance officer at Rockefeller Financial, Solomon returns to the industry regulator.
The firm and the former rep were ordered to pay Carlos Ramon Tapia Sanchez $160,000 each in damages; his attorney said the broker inappropriately recommended that Sanchez invest in junk bonds.
Marc Korsch, who was booted from the securities industry last year, has a staggering 33 disclosure items on his BrokerCheck report.
The Finra board announced that it had approved sending a reworked rule to the SEC but it provided no details on substance or timing.
RIAs aren't adequately disclosing arbitration clauses in client contracts and are forcing clients into expensive dispute forums, the groups said.
Firms should be watching out for employees chatting on WhatsApp, as well as brokers in need of heightened supervision and complex products being sold to retail customers.
'This space, crypto markets, is a highly speculative asset class,' the SEC chairman said Monday at Finra's annual meeting.
The defendants, including two who had been barred from the brokerage industry, pocketed more than $75 million.
It’s not clear when the agency will announce its first major enforcement actions regarding recommendations brokers make to customers, the substantive heart of the regulation.
Ian Delahunty bought a leveraged exchange-traded note and owned it for 199 days rather than the day or two it was meant to be held.
Brokerage and fund trade associations caution against limiting the market for retail customers. Consumer group and state regulators say more oversight is needed to protect investors.
But as the year goes on, the current market volatility is likely to cause the number of arbitration cases to spike.
The broker-dealer self-regulator projects a drop in corporate filings and market trading volume, which will reduce its fee income.
A Finra arbitration panel ordered UBS to pay the clients $2.9 million in compensatory damages and $966,000 in attorneys' fees.
