Financial Industry Regulatory Authority

FINRA is not a government agency. It is a self-regulatory organisation authorised by Congress and overseen by the SEC, responsible for supervising broker-dealer firms and registered representatives.

Membership is effectively mandatory for firms conducting securities business with the US public.

FINRA becomes relevant when a broker-dealer is involved in a raise — placement agents, investment banks, and funding portals all fall under its rules.

Founders should verify that anyone being paid to introduce investors is properly registered. Paying unregistered finders a commission is a common and consequential compliance failure.