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In the United States, the 'Financial Industry Regulatory Authority' (FINRA) is a new self-regulatory organization, under the Securities Exchange Act of 1934, successor to the National Association of Securities Dealers, Inc. (NASD).
FINRA will be responsible for regulatory oversight of all securities firms that do business with the public; professional training, testing and licensing of registered persons; arbitration and mediation; market regulation by contract for The NASDAQ Stock Market, Inc., the American Stock Exchange LLC, and the International Securities Exchange, LLC; and industry utilities, such as Trade Reporting Facilities and other over-the-counter operations.
FINRA will be formed by a consolidation of the enforcement arm of the New York Stock Exchange, NYSE Regulation, Inc., and the NASD. The merger was approved by the United States Securities and Exchange Commission On July 26, 2007. According to SEC Release No. 34-56145:

The consolidation is intended to help streamline the broker-dealer regulatory system, combine technologies, and permit the establishment of a single set of rules governing membership matters, with the aim of enhancing oversight of U.S. securities firms and assuring investor protection.

SEC Chairman Christopher Cox said, "The consolidation of NASD's and NYSE's member firm regulatory functions is an important step toward making our self-regulatory system not only more efficient, but more effective in protecting investors. The Commission will work closely with FINRA to eliminate unnecessarily duplicative regulation, including consolidating and strengthening what until have now been two different member rulebooks and two different enforcement systems." http://www.sec.gov/news/press/2007/2007-151.htm SEC Press Release 2007-151

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External links

External links

★ Organization's website

★ Washington Post Article 'SEC Approves One Watchdog For Brokers Big and Small' By Carrie Johnson, Washington Post Staff Writer - Friday, July 27, 2007; D02