What is a FINRA broker?

A FINRA-registered broker is a securities professional who operates through a registered broker-dealer and is authorized to offer or recommend securities within a regulated framework. When making recommendations to retail investors, broker-dealers are subject to the SEC’s Regulation Best Interest (Reg BI), which requires them to act in the investor’s best interest and not place their own financial interests ahead of the investor’s interests. Recommendations should take into account factors such as the investor’s financial circumstances, investment objectives, risk tolerance, and other relevant considerations.

FINRA oversees registered broker-dealers and their associated securities professionals, establishing and enforcing rules designed to promote fair dealing, transparency, and investor protection. This regulatory oversight differs from the role of an EB-5 regional center, which is primarily governed by immigration-related requirements and is not necessarily subject to FINRA broker-dealer supervision when presenting its own investment opportunities.

A FINRA-registered broker working with EB-5 investors can help evaluate investment opportunities, compare project structures, review offering materials, explain investment risks, assess whether an investment may be appropriate for the investor, and provide securities-related recommendations within the applicable regulatory framework. The broker does not replace the immigration attorney. Instead, the two roles complement each other: the immigration attorney addresses the legal and immigration aspects of the EB-5 process, while the broker assists the investor with the securities and investment side of the decision.