About FINRA (2024)

FAQs

What will disqualify you from FINRA? ›

Any felony conviction within the previous 10 years is an automatic disqualification for FINRA. However, even after 10 years, any felony conviction of fraud, theft, or of a fraudulent nature must still be disclosed. In these instances FINRA would conduct an individual review to determine eligibility.

Please keep in mind that FINRA is a government-authorized not-for-profit organization that oversees the U.S. brokerage industry and would never ask investors for money. Here are some resources that address investor fraud and scams.

FINRA FINANCIAL INDUSTRY REGULATORY AUTHORITY is authorized by Congress to protect America's investors by making sure the broker-dealer industry operates fairly and honestly.

Collaboration, Expertise, Innovation and Responsibility: Introducing FINRA's Values | FINRA.org.

The Series 7 exam is considered to be of medium to hard difficulty. The Series 7 exam pass rate is 71%. Candidates must correctly answer 90 of 125 questions to achieve a passing score of 72%. Pass the FINRA Series 7 on your first try with Achievable's online self-study course.

The individual's employment history for the last 10 years—both in and outside the securities industry—as reported by the individual on their last Form U4 [which securities firms use to register investment professionals with self-regulatory organizations (SROs) and states].

Whether you're a novice practitioner or a finance expert, earning a Financial Industry Regulatory Authority (FINRA) license is a viable option to help you enter the securities industry. From securities traders to research analysts, there are many specialized qualifications for you to consider.

Timeframe Requirements

FINRA is required to process the application within 180 calendar days from the date FINRA receives a substantially complete application for membership.

As of May 17, 2024, the average hourly pay for a Finra Series 7 in California is $26.20 an hour.

Who does FINRA investigate? ›

FINRA Enforcement investigates potential securities violations and, when appropriate, brings formal disciplinary actions against firms and their associated persons. Sanctions include restitution, fines, suspensions, and in cases of serious misconduct, bars from FINRA membership. Learn more.

The Financial Industry Regulatory Authority (FINRA) writes and enforces rules that govern registered brokers and broker-dealer firms in the United States.

Write and enforce rules governing the ethical activities of all registered broker-dealer firms and registered brokers in the U.S.; Examine firms for compliance with those rules; Foster market transparency; and. Educate investors.

The five percent rule, aka the 5% markup policy, is FINRA guidance that suggests brokers should not charge commissions on transactions that exceed 5%.

As a not-for-profit, self-regulatory organization whose operations are funded by member firm fees—without the support of any taxpayer dollars—FINRA must prudently manage its finances to ensure it can appropriately fund its mission to protect investors and promote market integrity in a manner that facilitates vibrant ...

FINRA does have a required reporting period for bankruptcy. Hiring prospects must disclose any personal bankruptcies they have filed in the past ten years. They must also disclose any liens and civil judgments. The applicant's U4 must include the past five years of their employment history.

(a) No registered broker, dealer, municipal securities broker or dealer, or government securities broker or dealer shall be admitted to membership, and no member shall be continued in membership, if such broker, dealer, municipal securities broker or dealer, government securities broker or dealer, or member fails or ...

Sanctions for wrongdoing include fines, suspensions, and, in cases of serious misconduct, bars from FINRA membership. FINRA publishes its Sanction Guidelines so that members, associated persons and their counsel understand the types of disciplinary sanctions that may be applicable to various violations.

If a person has any felony or securities-related misdemeanor conviction (includes guilty and no contest pleas as well) in the last 10 years, they are generally disqualified from gaining effective registration, effectively banning them from the securities industry.