What Is FINRA? Role, Rules, and Licensing Exams
FINRA, the Financial Industry Regulatory Authority, is the self-regulatory organization that supervises U.S. broker-dealers and their registered representatives. It writes conduct rules, examines and disciplines firms, and administers the qualification exams such as the SIE and the Series 7.
Where FINRA came from
FINRA was created in 2007 by combining the National Association of Securities Dealers (NASD) with the member regulation, enforcement, and arbitration operations of the New York Stock Exchange. It is overseen by the SEC.
What FINRA does for candidates
FINRA publishes the content outlines for its qualification exams, sets the registration process through Forms U4 and U5, enforces continuing education, and runs the Central Registration Depository (CRD). Passing the SIE and a top-off exam such as the Series 7 is how a candidate qualifies to register as a general securities representative.
Frequently asked questions
What is FINRA?
FINRA, the Financial Industry Regulatory Authority, is the self-regulatory organization that supervises U.S. broker-dealers and their registered representatives. It writes conduct rules, examines and disciplines firms, and administers the qualification exams such as the SIE and the Series 7.
How does FINRA show up on the exam?
Know that FINRA is an SRO, not a government agency, and that its rules are subject to SEC approval. Questions often test whether a rule comes from FINRA, the SEC, or the MSRB.
Practice this concept
Sources
- FINRA Rulebook
- Securities Exchange Act of 1934, Section 15A
Educational content for exam preparation, not legal, tax, or investment advice. OpenExamHub is not affiliated with FINRA, the SEC, or the MSRB. Confirm current rule text before relying on it.
More exam terms
Self-Regulatory Organization (SRO) · Wash Sale Rule · Margin Call · Regulation T · Accredited Investor · Pattern Day Trader (PDT) Rule · All terms