What is a primary function of FINRA?

The primary function of the Financial Industry Regulatory Authority (FINRA) is to oversee brokerage firms and individual brokers. This encompasses a range of activities aimed at maintaining fairness in the financial markets and protecting investors. FINRA establishes regulations that govern the behavior of its member firms and their associated individuals, ensuring compliance with laws and ethical standards. By conducting regular examinations, enforcing rules, and providing guidance on trading practices, FINRA promotes a transparent and trustworthy environment for buying and selling securities.

The objectives of FINRA include maintaining market integrity, preventing fraud, and facilitating investor education, which are all critical aspects of its oversight role. Through their enforcement actions and regulatory oversight, they help to maintain investor confidence and ensure a level playing field in the financial markets.

The other choices involve functions outside of FINRA's mandate and focus areas, such as managing public education programs or enforcing trade agreements, which are not aligned with the core responsibilities that are centralized around the oversight of brokerage activities and individual broker conduct.