FINRA

FINRA is a self-regulatory organization, meaning it is not a government agency but instead a body created and funded by the securities industry itself, overseen by the SEC, that regulates brokers and brokerage firms doing business in the United States. Every broker and brokerage firm operating in the US must register with FINRA, and FINRA sets and enforces rules covering how they deal with clients.

FINRA's work includes licensing and examining brokers, writing rules for how brokerage firms must conduct business, monitoring trading for signs of misconduct, and disciplining firms or individuals who break the rules, which can include fines, suspensions, or permanent bans from the industry. It also runs a free public tool investors can use to look up a broker's licensing history, employment record, and any disciplinary actions.

For everyday investors, FINRA is one of the main reasons that dealing with a US brokerage comes with baseline consumer protections, such as rules around the suitability of investment recommendations and disclosure of fees. It sits alongside the SEC in overseeing US securities markets, with the SEC setting broader securities law and FINRA handling the day to day regulation of the brokers and firms investors actually interact with.