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Financial Regulators Reference
Financial regulators write the rules that govern how securities are issued, how advisers behave, how derivatives are traded, and how taxes are reported. This section profiles the major US financial regulators: their statutory authority, the specific markets or participants they cover, and the rules most relevant to investors. Understanding jurisdiction matters when something goes wrong and you need to know where to file a complaint.
Direct Answer
US financial regulators divide authority by market segment. The SEC regulates securities (stocks, bonds, funds) and the advisers and broker-dealers who sell them. FINRA is the SEC-authorized self-regulatory organization for broker-dealers. The CFTC regulates futures and swaps. The IRS administers the tax rules that govern investment income and gains. The MSRB writes rules for municipal securities dealers.
Common questions
When should an investor contact FINRA versus the SEC?
Contact FINRA if you have a complaint about a broker-dealer or one of its registered representatives, such as unauthorized trading, unsuitable recommendations, or excessive fees. Use FINRA's BrokerCheck to verify a broker's registration and disciplinary history. Contact the SEC for complaints about investment advisers, public companies, or securities fraud that goes beyond a single broker-dealer relationship. The SEC also runs the SEC Whistleblower Program, which can pay an award for tips leading to enforcement actions.
What is the difference between CFTC-regulated and SEC-regulated products?
The CFTC has exclusive jurisdiction over futures contracts and most swaps, including equity index futures, commodity futures, and interest rate swaps. The SEC regulates equities, bonds, and options on individual securities. Products that straddle both regulators (such as security futures and mixed swaps) are subject to joint jurisdiction. This matters for investor protection: CFTC markets have different margin rules, account protection mechanisms, and dispute resolution paths than SEC-regulated brokerage accounts.
Every guide in this section
5 guides in this section.
All guides
- Commodity Futures Trading Commission (CFTC)
The CFTC regulates U.S. derivatives markets including futures, options on futures, and swaps.
- FINRA: Financial Industry Regulatory Authority
FINRA is a self-regulatory organization overseeing U.S.
- IRS for Investors: Tax Rules, Forms, and Publications
The IRS administers federal tax law for investors, covering capital gains, dividends, retirement accounts, required minimum distributions, cost basis, and tax reporting.
- Municipal Securities Rulemaking Board (MSRB)
The MSRB writes rules for municipal securities dealers and advisers and operates EMMA, the official platform for municipal bond disclosures and transaction data.
- U.S. Securities and Exchange Commission (SEC)
The SEC is the primary U.S. federal securities-market regulator.