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Table of Contents

SIFMA (Security Industry/Financial Market Association)

What Is SIFMA (Security Industry/Financial Market Association)?

The Securities Industry and Financial Markets Association (SIFMA) is a not-for-profit trade association that represents securities brokerage firms, investment banking institutions, and other investment firms. SIFMA represents firms of all sizes in all financial markets in the U.S. and around the globe. The organization’s membership represents 80% of the U.S. broker-dealer sector by revenue and 50% of the asset management sector as measured by assets under management.

Key Takeaways

  • SIFMA is a trade association and should not be confused with government or regulatory agencies.
  • The SIFMA Foundation aims to educate those who may not be at the financial literacy level of their members.
  • SIFMA offers two membership options based on your position within the industry.
  • The organization is classified as a 501(c)(6) organization.
  • SIFMA provides industry-leading research publications.

Understanding SIFMA

Securities Industry and Financial Markets Association currently represent over 70% of U.S. financial advisers. The members they represent have over $52 trillion in the combined assets, spread between individual investors, investment companies, endowments, pension funds, hedge funds, and institutional clients. These clients include mutual funds and retirement plans, as well as banks and brokerage firms.

The organization’s members consist of more than 263,000 professionals in the finance and banking industries. SIFMA members exchange ideas and support positive change on behalf of members and clients by participating in more than 100 committees and sub-groups. 

Committees focus on a wide range of critical and timely topics and challenges with a focus on priorities, concerns, and challenges faced by those in specific markets or who handle particular products, such as municipal securities, derivatives, credit markets and equity capital markets.

  • Compliance and legal issues
  • Federal government relations 
  • International policy
  • Research and surveys
  • State government procedures
  • Communications. 

One of SIFMA’s fundamental goals is to enhance the public's trust and confidence in the markets while delivering an efficient, enhanced member network of access and forward-looking services. The organization also helps encourage a well-informed industry by providing premier educational resources for industry professionals and the investors they serve.

SIFMA staff, members, and committees focus on a wide range of pose issues that affect financial industry professionals and their clients. Some of these issues include market structure, tax reform, cyber-security, infrastructure, and matters involving senior investors.

SIFMA has offices in New York and Washington, D.C., and is the U.S. regional member of the Global Financial Markets Association (GFMA).

SIFMA History

The formation of SIFMA through a merger of the two financial industry associations occurred in 2007. It traces its origins back much further, however. The organization's evolution dates back to 1912, with the formation of the Investment Bankers Association of America.

The SIA would eventually join with The Bond Market Association in 2007, to form what is now SIFMA.

What Does SIFMA Stand for?

SIFMA stands for the Securities Industry and Financial Markets Association. They represent and advocate for financial industry professionals.

What Is the SIFMA Rate?

The amount that SIFMA charges for membership differs widely based on the type of organization you are in, as well as whether you are a professional organization or an individual client. They offer two membership plans: the Full Membership which is for broker-dealers, investment banks, and asset managers, and the Associate Membership which is for "other market participants."

What Is the SIFMA Test?

The SIFMA test, called the "industry-wide business continuity test," is a test that highlight's the financial industry's ability to operate through a significant emergency using backup sites, recovery facilities, and backup communications capabilities. The organization believes all member firms should participate annually.

Is SIFMA a Regulator?

SIFMA is not a regulatory agency. They advocate for financial professionals and provide insights into the market and although they may have comments or provide data about the regulatory environment, they are not a regulator themselves.

What Is the SIFMA Foundation?

The SIFMA Foundation provides financial programs and tools designed to educate those in the markets, regardless of background. The Foundation aims to strengthen economic opportunity across communities and increase awareness of the global marketplace. The Foundation supports teachers and key leaders in the field. On the SIFMA Foundation site, you can access tools and games designed to increase awareness and develop financial literacy.

The Bottom Line

SIFMA is an organization that delivers financial information in order to advocate on behalf of its diverse and educated membership base. Many of their research publications are free on their website and offer invaluable insight into individual segments of the world's economy, as well as a top-down overview of what is going on across all securities and asset classes.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. SIFMA. "Asset Management."

  2. SIFMA. "About."

  3. SIFMA. "Join."

  4. SIFMA. "Business Continuity Planning."

  5. SIFMA. "Advocacy & Resources."

  6. SIFMA. "SIFMA Foundation."

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