FINRA

Financial Industry Regulatory Authority (FINRA)

USA

The successor organization to the National Association of Securities Dealers, Inc. (NASD). The largest non-governmental regulator for all securities firms doing business in the US. FINRA oversees over 5,000 brokerage firms, about 171,000 branch offices and more than 672,000 registered securities representatives. FINRA was created in July 2007 through the consolidation of the NASD and the member regulation, enforcement and arbitration functions of the NYSE.

The FINRA rulebook currently consists of both NASD Rules and certain NYSE Rules that FINRA has incorporated (Incorporated NYSE Rules). FINRA is in the process of consolidating the NASD and Incorporated NYSE Rules into a single set of FINRA rules. The Incorporated NYSE Rules apply solely to those members of FINRA that are also members of NYSE, referred to as Dual Members. Dual Members also must comply with NASD Rules. The new consolidated rulebook will consist only of FINRA Rules and will apply to all FINRA members. Firms that were members only of NASD as of July 30, 2007 remain subject only to NASD Rules, provided they do not become NYSE members in which case they would be subject to both NASD Rules and the Incorporated NYSE Rules. Similarly, a firm that becomes a new member of FINRA only (and not a member of NYSE) will be subject only to NASD Rules. All FINRA members are subject to the FINRA By-Laws and Schedules to the By-Laws.

underwriters must make FINRA filings in connection with IPOs and certain secondary offerings of equity securities of newly public companies.