FINRA compliance and regulations FAQs The Rulebook contains a set of rules that govern everything from how firms conduct business with their customers to how they manage their own finances. By adhering to these rules, broker-dealers can help protect investors and ensure that the markets function fairly and efficiently.

FINRA requires all brokers to be licensed and registered. FINRA makes sure all brokers have passed their examinations, have the right qualifications, and satisfy continuing education requirements. FINRA has hundreds of professionally trained financial examiners who investigate brokers and the way they are operating.

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.

In 1943, the Association's Board adopted what has become known as the "5% Policy" to be applied to transactions executed for customers. It was based upon studies demonstrating that the large majority of customer transactions were effected at a mark-up of 5% or less.