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Financial Industry Regulatory Authority (FINRA)

Frequently asked questions

While the Financial Industry Regulatory Authority (FINRA) does have regulatory powers, it is not a part of the government. Rather, it’s an independent nonprofit that handles the licensing and registration of broker-dealers in the United States.

The Securities and Exchange Commission (SEC), meanwhile, is a government agency that focuses on the integrity and protection of the securities market.

To become FINRA certified, securities professionals must register for and pass stringent qualification exams. Additionally, FINRA-certified brokers are required to complete Continuing Education (CE) programs every year.

A FINRA license demonstrates that you have completed FINRA exams and are authorized to carry out specific securities activities. However, it’s worth noting that individual states may have differing requirements for securities licensing.

Anyone who is engaged in the securities function within a business must register with FINRA and pass the qualification exams. This often includes salespeople, branch managers, C-suite officers, directors, and department supervisors.