By The Going Public Attorneys – The Financial Institution Regulatory Authority (FINRA) plays an important role in going public transactions. While filing a registration statement on Form S-1 can make a company reporting with the Securities and Exchange Commission, it will not cause the company’s stock to trade and it will not result in a ticker symbol. Only FINRA can assign a stock ticker symbol. FINRA is a self-regulatory organization (“SRO”) created in 2007. FINRA is the largest non-governmental regulator of broker-dealers in the U.S. FINRA oversees nearly several thousand brokerage firms, hundreds of thousands of their branch offices as well as their registered securities representatives.
FINRA is dedicated to investor protection and market integrity through effective and efficient regulation of the securities markets
FINRA is an independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly.
FINRA does this by:
- writing and enforcing rules governing the activities of more than 4,000 securities firms with approximately 637,700 brokers;
- examining firms for compliance with those rules;
- fostering market transparency; and
- educating investors.
FINRA’s independent regulation plays a critical role in America’s financial system—by enforcing high ethical standards, bringing the necessary resources and expertise to regulation and enhancing investor safeguards and market integrity—all at no cost to taxpayers.
Every investor in America relies on one thing: fair financial markets. That’s why FINRA works every day to ensure that:
- every investor receives the basic protectionsthey deserve;
- anyone who sells a securities product has been tested, qualified and licensed;
- every securities product advertisement used is truthful, and not misleading;
- any securities product sold to an investor is suitable for that investor’s needs; and
- investors receive complete disclosure about the investment product before purchase.
In 2014, through its aggressive investigatory and enforcement process, FINRA brought 1,397 disciplinary actions against registered brokers and firms. It levied $134 million in fines and FINRA ordered $32.3 million in restitution to harmed investors. In addition, FINRA referred more than 700 fraud and insider trading cases to the governmental agencies including the SEC for investigations.
During the going public process, FINRA reviews material information about the company, its officers, directors and securities. Without FINRA’s approval, a company’s securities cannot trade in the U.S.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, or info@securitieslawyer101.com or visit www.GoPublic101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Going Public Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.GoPublic101.com
