What is the role of FINRA in investor protection?

FINRA, the Financial Industry Regulatory Authority, plays an important role in investor protection in California. FINRA is an independent, self-regulatory organization that works with the U.S. Securities and Exchange Commission to protect investors and ensure the integrity of the markets. FINRA works to prevent investment fraud and to ensure that brokers and dealers comply with industry regulations. They are responsible for conducting inspections and examinations of registered firms and brokers to ensure their compliance with securities laws and regulations, including the prevention of fraud. They also provide investor education and carry out investor protection initiatives through initiatives like their Office of Investor Education and Advocacy. Moreover, FINRA also operates the BrokerCheck program, which allows investors to check the professional and disciplinary records of current and former registered brokers, dealers, and investment advisers. BrokerCheck provides financial background information on firms and combines FINRA’s records with a search of state licensing agencies, so investors can check for qualifications, employment history, disciplinary events, and more. Finally, FINRA works to ensure that all firms, brokers, and advisors conduct themselves in an ethical manner, and that investors are informed of their rights, including the right to challenge any purchases or investments they believe to be fraudulent. These efforts are an essential part of ensuring that investors in California are protected from fraudulent activity.

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What is the role of FINRA in investor protection?

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