FINRA Seems Determined To Fulfill Its Business Growth Goals Despite Falling Membership Numbers Hot

 

Two focuses of FINRA's growth lie in improving its BrokerCheck system as well as increasing transparency through the system FINRA uses to trace order flow. BrokerCheck gives investors access to disciplinary and other records for brokers and financial services firms.

 

The growth in RIAs is significant and pits FINRA against the SEC as a regulatory body. FINRA took over the former NASD’s oversight functions after the Nasdaq exchange became separate from the regulatory body. RIAs are governed by a fiduciary standard.

 

Most object to FINRA’s broadening its regulatory authority because broker-dealers and registered reps are governed under a set of rules that do not measure up to the fiduciary yardstick. FINRA feels that Congress’s attempts at regulation so far have been inadequate. FINRA also has a business plan for growth that it wishes to accomplish. Such a business plan could possibly obfuscate the motives behind FINRA's push to become the major regulatory authority for the industry.