FINRA

Many Soreide Law Group clients, and readers of our blog, often hear us refer to "FINRA." FINRA is the abbreviation of the Financial Industry Regulatory Authority, Inc. In case you are wondering what FINRA is and what they do, we will give you a very brief synopsis.

FINRA is responsible for regulating it's member firms and the exchange markets located in our country. They protect the investors and keep the markets fair and honest through the regulation of the securities industry.

FINRA is not-for-profit organization and is not a part of the government. They are independent, and authorized by Congress to protect investors by being the 'watch dog,' so to speak, of the securities industry.

FINRA enforces their standards by: educating investors, writing and enforcing rules governing the activities of securities firms and their brokers, making sure the firms comply with the rules, and insuring market transparency.

FINRA is responsible for licensing brokers and firms. FINRA maintains their "BrokerCheck" which is available free on their website to the public. BrokerCheck helps investors research the backgrounds of brokerage firms and brokers who are currently or formerly registered with FINRA. This includes current licensing status and history, employment history and reported regulatory, customer dispute, criminal and other matters. FINRA suggests that BrokerCheck should be "the first resource investors turn to when choosing whether to do business or continue to do business with a particular firm or individual." This very valuable tool is available on FINRA's website finra.org.