Understanding FINRA Compliance
SEN Technologies is compliant with FINRA standards. We provide hosting of applications and files for financial services organizations.
FINRA provides the first line of oversight for broker-dealers and the first line of defense for investors by virtue of its comprehensive oversight program.
FINRA regulates both the firms and professionals selling securities in the United States and the U.S. securities markets. In this capacity, FINRA writes and enforces its own rules, as well as enforcing federal securities rules and laws.
FINRA is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry.
FINRA is not part of the government.
FINRA is an independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly.
FINRA independent regulation plays a critical role in America’s financial system—by enforcing high ethical standards, bringing the necessary resources and expertise to regulation and enhancing investor safeguards and market integrity—all at no cost to taxpayers.
FINRA ensures that – investor receives the basic protections, anyone who sells a securities product has been tested, qualified and licensed, securities product advertisement used is truthful, and not misleading, securities product sold to an investor is suitable for that investor’s needs and investors receive complete disclosure about the investment product before purchase.
FINRA Rule 4530 which replaced NASD Rule 3070 in 2011, requires a member firm to report to FINRA within 30 calendar days after the firm has concluded, or reasonably should have concluded, on its own, that the firm or an associated person of the firm has violated any securities, insurance, commodities, financial or investment-related laws, rules, regulations or standards of conduct of any domestic or foreign regulatory body or self-regulatory organization (SRO). This requirement is generally modeled after a similar New York Stock Exchange requirement currently in force. The new Rule does not require firms to report every instance of non-compliant conduct.
How FINRA Operates
- Enforcement – advances investor confidence through vigorous, fair and effective enforcement of securities rules and laws, and by investigating potential violations.
- FINRA can take disciplinary action against firms and individuals who break securities rules by either issuing a formal complaint or through a settlement.
- Member Regulation – examines all firms for compliance with FINRA, MSRB and SEC rules, and federal securities laws. It also analyzes and regulates firm sales practices
- Office of Fraud Detection and Market Intelligence OFDMI- gathers and evaluates regulatory intelligence to detect insider trading and other strategies to gain unfair market advantage.
- Market Regulation – achieves its market integrity mandate with a unique equity and options cross-market surveillance program employing advanced technology.
- Transparency Services – the department oversees FINRA’s equity and debt reporting facilities and ensures market transparency for investors and other market participants.
- Office of the Chief Economist – analyzes the costs and benefits of existing and potential FINRA rule-making to ensure that rules minimize unnecessary regulatory burdens.