What is the function of the Financial Industry Regulatory Authority (FINRA)?

The function of the Financial Industry Regulatory Authority (FINRA) is to oversee broker-dealers and enforce ethics within the securities industry. This includes ensuring that brokers and firms comply with federal securities laws and regulations, as well as promoting fair and effective markets. FINRA is responsible for regulating trading practices, ensuring that broker-dealers operate fairly, and protecting investors from fraudulent activities.

Through its oversight role, FINRA also develops rules and standards that govern the behavior of market participants, conducting examinations and investigations to uphold these standards. This enforcement of ethics is crucial for maintaining trust in the financial system and ensuring that investors can engage in securities transactions with confidence.

Other options do not accurately represent FINRA's scope of work. For instance, issuing government securities pertains to the responsibilities of government entities, while setting interest rates falls under central banking functions, and insuring investor deposits is the role of the Federal Deposit Insurance Corporation (FDIC). Therefore, the specific mandate of FINRA is focused on regulation and enforcement within the realm of broker-dealers and the securities industry.