What is the role of FINRA in investor protection?

The Financial Industry Regulatory Authority (FINRA) is a nonprofit organization that works to promote investor protection in the securities industry in the state of Washington. FINRA works to protect investors by regulating brokerage firms, their representatives, and the markets in which securities are bought and sold. FINRA requires brokerage firms and their employees to follow rules and regulations, as well as register with FINRA to conduct business in Washington. FINRA also requires firms and employees to agree to FINRA’s Code of Conduct, which provides guidance on how to conduct business in an ethical and professional manner. The Code of Conduct outlines expectations for professional behavior and the prevention of fraud and other misconduct such as insider trading. FINRA also works to educate investors about investment fraud by providing online resources and workshops, creating fraud prevention campaigns, and issuing investor alerts. In addition, FINRA works to resolve disputes between investors and their financial advisors. FINRA’s mediation, arbitration, and Small Claims processes help resolve disputes in a timely and cost-effective manner. FINRA’s Investor Complaint Center also allows investors to report any unlawful or unethical behavior by their financial advisor. FINRA investigates these complaints, and if necessary, takes disciplinary action against firms and representatives who violate rules and regulations. Overall, the role of FINRA is to protect investors by providing education, enforcing regulations, and resolving disputes. FINRA also serves as a resource for investors to research their financial advisor and learn more about avoiding investment fraud.

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What is the role of FINRA in investor protection?

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