What is the role of FINRA?

• A. FINRA monitors and regulates US-based stock, foreign exchange, and futures professionals.
• B. Maintains the physical trading floors.
• C. Provides credit ratings for securities.
• D. Audits corporate financial statements.

Answer: (A)

FINRA’s role is to regulate the broker-dealer industry in the United States and oversee the individuals who sell securities, with the aim of protecting investors and keeping markets fair. It operates under the oversight of the SEC, writing and enforcing rules for member firms and registered representatives, conducting examinations, and pursuing disciplinary actions when rules are violated. It also administers licensing exams for securities professionals.

The other activities listed don’t fit FINRA’s remit: maintaining physical trading floors is primarily an exchange function; providing credit ratings is done by independent rating agencies; auditing corporate financial statements is done by external auditors.