The Financial Industry Regulatory Authority (FINRA) is a regulatory organization that oversees and regulates broker-dealers and their registered representatives in the United States. In the context of EB-5, FINRA has a role in regulating and overseeing the activities of registered broker-dealers who participate in the sale of securities associated with EB-5 investments.
FINRA ensures that broker-dealers comply with applicable securities laws and regulations and maintain a high standard of professional conduct in the securities industry. Specifically, FINRA regulates the advertising, sale, and distribution of securities, and enforces compliance with federal securities laws, as well as its own rules and regulations.
If a broker-dealer engages in any fraudulent or unethical behavior in connection with EB-5 investments, FINRA has the power to investigate and bring disciplinary actions against the broker-dealer and its registered representatives. Additionally, FINRA provides resources and guidance to assist investors in making informed decisions about their investments, including providing educational materials and access to a database of information on broker-dealers and their registered representatives.
