Who Regulates What
Several bodies oversee different parts of the market, and knowing which one covers a firm determines both what rules apply and where a complaint goes.
MadStockAlerts Research · Updated August 29, 2026
What to take away
- The SEC regulates securities markets, issuers and advisers.
- FINRA is a self-regulatory organisation overseeing broker-dealers.
- The CFTC covers futures and much of the derivatives market.
- State regulators cover firms and offerings within their own borders.
- A firm outside all of them is outside every protection those regimes provide.
MAD Academy Training Video · 0:46
Who You Would Actually Call
Several bodies regulate different parts of the market, and knowing which one covers your problem decides whether anyone can help.
This lesson is part of a Stock Alerts + Tools plan.
The main bodies
| Body | Covers | Public record |
|---|---|---|
| SEC | Securities markets, public companies, investment advisers | EDGAR, adviser registration, enforcement actions |
| FINRA | Broker-dealers and their registered representatives | The broker registration record and disciplinary history |
| CFTC | Futures, options on futures, and parts of the swaps market | Registration records through the futures association |
| State securities regulators | Firms, advisers and offerings within a state | State registration and enforcement records |
| Banking regulators | Banks and their deposit products | Separate records, and a separate protection scheme |
The division matters practically because it determines where an obligation comes from and where a complaint is heard. A dispute with a broker-dealer follows one path; a dispute with an investment adviser follows another.
What regulators actually do
- Registration: firms and individuals must register, and registration can be denied or revoked.
- Rulemaking: the detailed conduct rules that firms operate under.
- Examination: routine inspections of registered firms, on a cycle and for cause.
- Enforcement: investigations and actions, which are published.
- Disclosure review: the comment letter process for public company filings.
What they do not do is approve investments or vouch for them. Registration of a firm or an offering means disclosure requirements were met; it is not a judgement that anything is a good idea, and any claim that a regulator has approved an investment is itself a warning sign.
Self-regulation, and what it means
FINRA is a self-regulatory organisation: an industry body with rulemaking, examination and disciplinary powers, overseen by the SEC. Its rules bind its members, and membership is a practical requirement for a broker-dealer dealing with the public.
The arrangement has an obvious tension and a real function. The tension is that the industry funds the body that disciplines it; the function is a level of examination and record-keeping that a public agency of the same size could not provide, and a public disciplinary record that is unusually detailed.
For anyone checking a firm, the practical consequence is straightforward: that disciplinary record exists, it is free, and it covers individuals as well as firms.
The gap that matters
Every protection described in this pillar attaches to a regulated entity. A firm that is not registered anywhere is not subject to the conduct rules, is not examined, is not a member of any protection scheme, and is not within any arbitration forum.
This is why the registration check is the first step in every fraud-prevention list ever written. It is free, it takes a minute, and a substantial share of investment fraud fails it immediately.
Some legitimate activity also sits outside these regimes, including certain private offerings and some digital asset platforms. Being outside is not proof of anything; it means the protections described here do not apply, and that is worth knowing before rather than after.
How to reach them
Every body listed here accepts complaints and tips from the public, without a lawyer and without a fee. The routes are separate and a matter can go to more than one.
| Channel | For |
|---|---|
| The SEC's tips and complaints system | Anything involving securities, issuers or advisers |
| FINRA's complaint process | Conduct by a broker-dealer or a registered representative |
| State securities regulators | Firms and offerings in a state, and frequently the fastest response |
| The CFTC | Futures, commodity pools and related fraud |
| Adult protective services | Where exploitation of a vulnerable adult is involved |
The third row is underused. State regulators often act faster on smaller matters than federal ones and have jurisdiction over conduct within the state, which covers a great deal of what individuals encounter.
A complaint also has a function beyond the individual case: it feeds the disciplinary record that the next person checking that firm will read.