Who is the largest independent regulator for all securities firms doing business in the US?
The Financial Industry Regulatory Authority, Inc. (FINRA) is an independent, non- governmental regulator for all securities firms doing business with the public in the United States.
FINRA is a not-for-profit, non-governmental regulator for all broker-dealer firms and brokers that sell securities in the United States. We regulate approximately 3,500 firms and 620,000 brokers across the country.
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.
On the federal level, the primary securities regulator is the Securities and Exchange Commission (SEC). Futures and some aspects of derivatives are regulated by the Commodity Futures Trading Commission (CFTC).
As of March 2023, LPL Financial was the largest independent broker-dealer by gross revenue, with margins of roughly 8.6 billion U.S. dollars roughly 2.4 billion U.S. dollars more than the second largest independent broker in the United States which was Ameriprise Financial.
There are numerous agencies assigned to regulate and oversee financial institutions and financial markets in the United States, including the Federal Reserve Board (FRB), the Federal Deposit Insurance Corp. (FDIC), and the Securities and Exchange Commission (SEC).
FINRA Regulates Broker-Dealers, Capital Acquisition Brokers, and Funding Portals. A Broker Dealer is in the business of buying or selling securities on behalf of its customers or its own account or both. A Capital Acquisition Broker is a Broker Dealer subject to a narrower rule book.
The U.S. Securities and Exchange Commission (the “Commission” or the “SEC”) is the most important regulator of U.S. capital markets.
The Financial Industry Regulatory Authority (FINRA) writes and enforces rules that govern registered brokers and broker-dealer firms in the United States. FINRA also administers the qualifying exams for securities professionals. FINRA provides resources, such as BrokerCheck, that help to protect investors.
The largest brokerage firms are household names: Vanguard, Charles Schwab, Fidelity, Bank of America (specifically Merrill Lynch), and J.P. Morgan each manage trillions of assets and millions of accounts. Vanguard alone has $8.2 trillion assets under management (AUM) as of July 31, 2023.
What is the difference between FINRA and SEC?
FINRA primarily regulates brokerage firms and professionals, while the SEC has a broader mandate, overseeing the entire securities industry, including public companies and investment advisors.
The number of brokerage firms that Finra oversees fell for the fourth-straight year in 2022 to a total of 3,378.
The Securities Act of 1933 is the federal law that requires that securities sold to the public be registered with the SEC and that complete information about the seller and the stock offering is made available to investors. The Securities Act of 1934 regulates the operation of stock exchanges and trading.
| Stock Brokerage Firm | Assets under management* |
|---|---|
| Charles Schwab | $8.5 trillion |
| Fidelity Investments | $4.4 trillion |
| JPMorgan Chase & Co. | $3.9 trillion |
| Merrill Wealth Management | $1.3 trillion |
The top four stock brokerage firms in the United States include Charles Schwab, TD Ameritrade, Fidelity Investments, and E*Trade but with Schwab's purchase of TD Ameritrade, this number will soon change to three.
An independent broker is not tied to any specific insurance company or financial institution. This means that they can offer products from multiple providers, giving their clients a wider range of options to choose from.
Reserve Bank of India has been empowered under Banking Regulation Act, 1949 to conduct the inspection of banks and regulate them in the interest of banking system, banking policy and depositors/public.
FINRA, Inc. FINRA, Inc. (referenced as "FINRA"), the Registered Section 15A Association, is the parent company of FINRA Regulation, Inc.
FINRA primarily regulates brokerage firms and professionals, while the SEC has a broader mandate, overseeing the entire securities industry, including public companies and investment advisors.
FINRA is a self-regulatory organization (SRO) that operates under the SEC, which is a federal government agency. While both agencies protect investors, FINRA primarily regulates broker-dealers and their agents, while the SEC has broad authority over securities markets.
Who is controlling stock market?
The stock market in India is regulated by the Securities and Exchange Board of India (SEBI). It was established under the SEBI Act, 1992.
SEBI is the prime regulator.
The NASD, as the o w n e r, operator, and regulator of The Nasdaq Stock Market, plays a vital role in the global economy as the prime economic engine for capi- tal formation. It will continue to perform this criti- cal function as the demand for capital continues to rise.
JPMS is a broker/dealer registered with the Securities and Exchange Commission (“SEC”) and is a member of the New York Stock Exchange, Financial Industry Regulatory Authority (“FINRA”), and the Securities Investor Protection Corporation (“SIPC”).
According to FINRA's CEO, FINRA's $550 million budget is paid by the securities industry.
