FINRA was created in 2007 as a successor to the National Association of Securities Dealers (NASD), by consolidating NASD and the member regulation, arbitration, and enforcement functions of the New York Stock Exchange (NYSE). The creation was meant to provide a lower-cost, more efficient form of self-regulation, streamlining the system and eliminating conflicting rules.

FINRA is the largest independent regulator for all securities firms doing business with the public in the United States. The organization conducts market regulation for the NASDAQ Stock Market, the International Securities Exchange, the American Stock Exchange, and the Chicago Climate Exchange. FINRA has nearly 2,800 employees and operates from Washington, D.C., New York, and a handful of district offices. They oversee nearly 5,000 brokerage firms, 173,000 branch offices, and 651,000 registered securities representatives. They primarily act to protect investors by maintaining fairness in U.S. capital markets.

FINRA is an investor advocate, educating the public regarding investing and providing basic tools to build financial knowledge. The FINRA Investor Education Foundation has some $46 million dedicated to education and protection ventures. Through BrokerCheck, FINRA offers information and disciplinary records on individual brokers and firms to the public, free of charge. 

FINRA also

--  educates and registers people within the securities business industry,

--  creates and enforces FINRA rules,

--  enforces federal securities law,

--  provides dispute resolution for individuals and firms, and

--  provides trade reporting and industry utilities in a dedicated effort to keep market functioning fairly.

FINRA also seeks to identify and address regulatory issues before they become a danger to the investor or bring harm to the markets. In 2009, FINRA created an Office of the Whistleblower, dedicated to expediting tips on illegal or unethical activity, with the goal of more quickly evaluating and reacting to such information. Such tips have led to some of the most significant enforcement actions in FINRA history. 

For more information, see:

--        The Financial Industry Regulatory Authority:  http://www.finra.org/

--        BrokerCheck:  http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/index.htm

--        FINRA Investor Education Foundation:  http://www.finrafoundation.org/

--        The U.S. Securities and Exchange Commission:  http://www.sec.gov/