FINRA/SEC Cybersecurity Compliance Consultants & Services


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What is FINRA?

The Financial Industry Regulatory Authority (FINRA) is a not-for-profit organization authorized by the government to oversee transactions and trading practices in the United States financial markets. It oversees over 600,000 brokers and billions of transactions on a daily basis.

By strategically analyzing market events, FINRA protects the integrity of financial markets and ensures that investors trade fairly. FINRA also provides extensive support to all stakeholders participating in the financial market, including but not limited to investors, policymakers, and market regulators.

Overseen by the Securities and Exchange Commission (SEC), FINRA promotes fairness and integrity of financial markets by:

  • Providing investors with basic investment protections
  • Ensuring securities meet robust quality control standards
  • Enforcing compliance with FINRA regulations 
  • Setting value standards for products sold to investors
  • Increasing the availability and accessibility of investor education

If your organization operates within the financial industry or engages in the trading of securities on the New York Stock Exchange, you may be required to comply with FINRA.

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What is FINRA Compliance?

Any organization that participates in the trading of securities must comply with FINRA regulations to ensure they conduct fair transactions on the financial market.

To meet the FINRA compliance requirements, organizations must ensure their financial transactions address four main compliance concerns:

  • Firm operations must meet FINRA’s integrity standards for all accounting, recordkeeping, and technology governance.
  • Communications and sales of securities must be transparent and meet the needs of all investors.
  • Financial market transactions must be conducted with integrity, ensuring best practices for audits and reporting.
  • Financial assets must be managed securely to protect investors and all relevant stakeholders.

Compliance with the FINRA regulations will help you safeguard your sensitive data from cybersecurity threats.

Who Needs to Be FINRA Compliant?

Three types of entities must comply with FINRA:

  • Broker-dealer firms buy or sell securities on behalf of investors.
  • Capital acquisition brokers provide a limited scope of securities-related financial services to companies or private equity funds.
  • Funding portals are SEC-certified crowdfunding service providers.

Non-compliance with FINRA regulations can compromise the sensitivity and integrity of your customers’ data.

At RSI Security we are experts in guiding you through FINRA/SEC regulations and standards aimed at helping professionals in the financial industry avoid cyber security risks. Our advisers help set policies and procedures so your organization can implement best practices through a cybersecurity program designed to protect customer data against any cyber risks such as a data breach.

RSI Security can help review your organization's approach to:

  • Technology governance
  • System change management
  • Risk assessments
  • Technical controls
  • Incident response
  • Vendor management
  • Data loss prevention
  • Staff training
  • FINRA compliance
  • SEC data security

* Source: FINRA Website

Benefits to Being FINRA Compliant

By being FINRA compliant, you can benefit from:

  • Enhanced data security by implementing FINRA cybersecurity controls
  • Higher confidence in the integrity of your securities transactions
  • Full licensing and designation as a broker or securities firm
  • FINRA-provided resources for training and supporting your staff

Compliance with FINRA regulations will also help you avoid potential violations of securities trading and related financial practices—and possible consequences they could entail.

Consequences of Being Non-Compliant With FINRA

Non-compliance with FINRA may result in a securities violation and potential disciplinary action.

If your organization is found to be non-compliant with FINRA regulations, you may undergo disciplinary action in the form of:

  • A settlement through which you can resolve the alleged violation by completing and submitting the necessary documentation stipulated by FINRA
  • An appearance at an official hearing if you do not settle the complaint

FINRA violations may also result in fines, suspension from securities trading, and exclusion from participating in the financial services industry (for the most significant violations).

How Do You Become FINRA Compliant?

Depending on the financial services you provide, you become FINRA compliant by meeting slightly different FINRA compliance requirements. FINRA provides a range of compliance tools such as checklists and templates to help organizations in the financial industry comply.

However, it is always best to consult with FINRA compliance consultants, who can advise on best practices for achieving and maintaining seamless, long-term FINRA compliance.

Download our FINRA Services Data Sheet Here

FINRA & SEC Compliance FAQs

FINRA oversees fairness and integrity for all transactions conducted on the New York Stock Exchange. By governing entities involved directly or indirectly in securities transactions, FINRA ensures that trading practices are fair and secure for all investors these transactions impact.

FINRA regulates any organization that is involved in buying or selling securities in the United States financial markets. Specifically, broker-dealer firms, capital acquisition brokers, and funding portals are subject to FINRA’s regulations.

Unlike FINRA, which oversees the integrity of securities transactions conducted by brokerage firms and individual brokers, the SEC governs the entire financial market of the United States, ensuring fairness for all investors. The SEC is also a governmental body, while FINRA is not.


Organizations that trust RSI Security

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Start taking steps now to ensure your FINRA/SEC Cybersecurity Compliance.