What Is FINRA? All About Financial Industry Regulatory Authority

What is FINRA?

What is the Need of FINRA?

  • Educating investors
  • Fostering transparency in the market
  • Writing/enforcing rules that govern activities of broker-dealers with brokers
  • Examining the companies for compliance with these rules

In the year 2016, via aggressive vigilance, many disciplinary actions were taken against registered brokers as well as firms. And millions were put into fines ordering millions in restitution to the harmed investors. There were fraud and insider trading cases referred to SEC and other agencies for litigation and prosecution.

Why Financial Industry Regulatory Authority is Important?

  • All investors receive essential protection which they thoroughly deserve
  • Anyone selling ay security product has to be tested as well as qualified, and also must be licensed
  • All securities products advertisements that are used must be truthful, and they should not be misleading
  • Any of the security products that are sold to investors must be suitable for the needs of those investors
  • Investors must get absolute disclosure regarding investment product much before its purchase

FINRA technology is crucial to protect investors, and also it has become a chief component of FINRA’s ability to undertake the following:

  • Oversee brokerage firms much effectively
  • Monitor US equity market accurately
  • Detect potential frauds quickly
  • Keep the investors always informed via useful tools

What is the Cost of FINRA Non-Compliance?

It can impact companies’ intellectual property, which can get leaked, and customer data also gets exposed, and other such out-of-compliance activities that can take place. FINRA compliance is a real need for financial companies. Social media has the potential of making things easy to be sharing anything that might not be supposed to be shared, and this could be cause for more significant concern as being depended upon the scope of businesses.

How Can a CASB Help Enterprises with FINRA Compliance?

Companies required a way of gaining visibility as well as control over these cloud services for helping companies prevent the loss of sensitive data and comply with these regulation policies as well as industry guidance, to report such cloud violations. Cloud Access Security Brokers help companies in this regard much. The customized CASB solution by CloudCodes, which is a leading name in this sector, can help financial firms in enhancing their cloud security protocols, thus making the process of achieving FINRA compliance much more accessible.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
CloudCodes Software

CloudCodes is a cloud security solution provider founded in 2011. We focus on providing cloud security solutions to enterprise customers through its SSO.