What is FINRA?

The Financial Industry Regulatory Authority, or FINRA, works with the Securities and Exchange Commission to regulate securities firms and brokers, protect those who invest in corporations, and keep the market fair and safe from fraud.

When investors lose money because their advisors misled them or participated in some type of fraudulent behavior, it is crucial that they have strong legal representation to help find them justice. FINRA works closely with the National Association of Securities Dealers and New York Stock Exchange to create rules and legislation that regulates securities firms throughout the United States. These regulations are known as Rules of Fair Practice and those members of FINRA must follow them in combination with federal commercial securities laws. In order to regulate the market and ensure fair practice, FINRA makes sure that they are the ones who train and license stock brokers. In addition, they oversee any business deals that take place amongst brokers and investors.


Some situations that may call for litigation include a situation in which their financial advisor knowingly and purposely misled them to make a bad investment. This runs the risk of them losing thousands of dollars as well as the potential for other negative repercussions. FINRA will assess the situation and determine whether the financial advisor took part in any negligent or fraudulent behavior.

If you have been impacted by fraudulent or negligent behavior by a stockbroker or securities firm, you should contact a business attorney who has experience in investor litigation with FINRA.

If you need the services of an experienced Montgomery County attorney who focuses on business law, please contact Friedman Schuman today to schedule a consultation today.

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