Financial Industry Regulatory Authority - FINRA

DEFINITION of 'Financial Industry Regulatory Authority - FINRA'

A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's regulation committee. The Financial Industry Regulatory Authority is responsible for governing business between brokers, dealers and the investing public. By consolidating these two regulators, FINRA aims to eliminate regulatory overlap and cost inefficiencies.

BREAKING DOWN 'Financial Industry Regulatory Authority - FINRA'

Originally, FINRA was known as SIRA, or the Securities Industry Regulatory Authority. However, complaints were made about the name, noting that it sounded very similar to the Arabic term "Sirah", the traditional term for biographical texts about Muhammad.

RELATED TERMS
  1. SEC Form PILOT

    A form that is filed with the SEC by self-regulatory organizations ...
  2. FINRA BrokerCheck

    An information vehicle containing statistics on both past and ...
  3. Series 11 License - Assistant Representative ...

    A securities license, administered by the Financial Industry ...
  4. National Association Of Securities ...

    The NASD was a self-regulatory organization of the securities ...
  5. Broker

    1. An individual or firm that charges a fee or commission for ...
  6. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
Related Articles
  1. Mutual Funds & ETFs

    Is Morningstar’s Star System An Effective Ranking Tool? (MORN)

    Learn why Morningstar's star rating system is not always a great predictor of future performance, and why investors should not pick funds on star ratings alone.
  2. Economics

    3 Economic Challenges Poland Faces in 2016

    Learn how Poland's economy faces many challenges entering 2016, mainly due to uncertainties surrounding the European Union and a change in its political regime.
  3. Professionals

    Equity Research: Career Path and Qualifications

    Find out what equity research analysts do on a day-to-day basis, and learn more about the typical career progression for these securities professionals.
  4. Professionals

    Compliance Officer: Job Description and Average Salary

    Learn what being a compliance officer entails, including job description, required education and training, skills and national average salary.
  5. Options & Futures

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  6. Professionals

    Get A Job In Compliance

    If you're a stickler for rules, this could be a promising career path for you.
  7. Professionals

    The Basics Of CFP Designation Maintenance

    The workload doesn't end with your exam. Find out how to keep up your CFP credential.
  8. Options & Futures

    The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  9. Professionals

    Why Bad Credit Is Bad For Financial Careers

    In order to obtain and maintain a career in the financial industry, it is also important to have a clean credit report.
  10. Professionals

    Investigating The Securities Police

    Learn about the history of FINRA and how this organization protects investors.
RELATED FAQS
  1. Are variable annuities safe?

    As of October 2015, many life insurance companies, and those companies that sell variable annuities, have experienced economic ... Read Full Answer >>
  2. How are variable annuities regulated?

    The sale of a variable annuity is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory ... Read Full Answer >>
  3. Do financial advisors need to pass the Series 7 exam?

    The exact nature of a financial advisor's job responsibilities determines whether he must have a Series 7 license. If a financial ... Read Full Answer >>
  4. Do financial advisors have to be licensed?

    Financial advisors must possess various securities licenses in order to sell investment products. The specific products an ... Read Full Answer >>
  5. What is considered a reasonable 12b-1 fee?

    A reasonable 12b-1 fee is generally considered to be 0.25% of the assets of the mutual fund. The maximum amount allowed for ... Read Full Answer >>
  6. For what reasons are electronics stocks commonly purchased by a value investor?

    Administered by the Financial Industry Regulatory Authority (FINRA), the Series 6 exam – Investment Company and Variable ... Read Full Answer >>
  7. What is the best ETN for trading mid-cap stocks?

    Exchange-traded notes (ETN) are different from exchange-traded funds (ETF) in that their values are not backed by actual ... Read Full Answer >>
  8. What does passing the Series 6 enable me to do?

    The Series 6, or the Investment Company Products/Variable Contracts Limited Representative, exam is administered by the Financial ... Read Full Answer >>
  9. How are asset management firms regulated?

    In principle, the asset management industry is largely governed by two bodies: the Securities and Exchange Commission (SEC) ... Read Full Answer >>
  10. Which factors most influence fixed income securities?

    The main factors that impact the prices of fixed income securities include interest rate changes, default or credit risk, ... Read Full Answer >>
  11. What are my options if I fail my Series 63 exam?

    A person can retake the Series 63, 65 or 66 exam an unlimited number of times, so long as applicable waiting period requirements ... Read Full Answer >>
  12. What should I bring to the Series 63 exam?

    When you are on your way to becoming a stockbroker or broker dealer and are working in the active trading industry, you must ... Read Full Answer >>
  13. How many people fail the series 63 exam every year?

    Because the Series 63 is a state exam, statistics vary and there is no official pass or fail rate currently provided. The ... Read Full Answer >>
  14. How do I train for a career in management information systems (MIS)?

    A career in management information systems (MIS) can be pursued in a similar way to computer information systems or information ... Read Full Answer >>
  15. How do I apply to work in the securities industry?

    The process of obtaining work in the securities industry basically follows a path of provisional hiring, training and, finally, ... Read Full Answer >>
  16. Who are cambrists and how do I become one?

    Cambrists (sometimes seen as "cambists," although the two terms aren't completely synonymous) are experts in the field of ... Read Full Answer >>
  17. How do I know if I am buying unregistered securities or stocks?

    All securities, including stocks, bonds and notes, must be registered with the Securities and Exchange Commission (SEC) before ... Read Full Answer >>
Hot Definitions
  1. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  2. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  3. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  4. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  5. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
Trading Center