What Is FINRA?
FINRA is a non-governmental organization authorized by Congress to regulate brokerage firms and the securities industry. Most agreements between investors and their financial advisers contain mandatory arbitration agreements. Under the terms of these arbitration agreements, investors are generally prohibited from suing their financial advisers in a court of law and must instead file an arbitration claim with FINRA. Prior to 2007, FINRA was referred to as National Association of Securities Dealers (“NASD”).