SIFMA definition (Security Industry/Financial Market Association)

What is SIFMA (Security Industry/Financial Market Association)?

The Securities Industry and Financial Markets Association (SIFMA) is a nonprofit trade association that represents securities brokerage firms, investment banking institutions, and other investment companies. SIFMA represents companies of all sizes in all financial markets in the United States and around the world. Members of the organization represent 80% of the US brokerage industry by revenue and 50% of the asset management industry as measured by assets under management.

Key points to remember

  • SIFMA is a trade association and should not be confused with government or regulatory agencies.
  • The SIFMA Foundation aims to educate those who may not have the level of financial literacy of their members.
  • SIFMA offers two membership options depending on your position within the industry.
  • The organization is classified as a 501(c)(6) organization.
  • SIFMA offers cutting-edge research publications.

Understanding SIFMA

The Securities Industry and Financial Markets Association currently represents over 70% of US financial advisors. The members they represent have over $52 trillion in combined assets, split between individual investors, investment firms, endowments, pension funds, hedge funds and institutional clients. These clients include mutual funds and pension plans, as well as banks and brokerage firms.

The membership of the organization consists of more than 263,000 professionals from the finance and banking industries. SIFMA members exchange ideas and support positive change on behalf of members and clients by participating in more than 100 committees and subgroups.

The committees focus on a wide range of critical and timely topics and challenges with a focus on the priorities, concerns and challenges faced by those operating in specific markets or managing particular products, such as municipal securities, derivatives, credit markets and equity capital markets.

  • Compliance and legal issues
  • Relations with the federal government
  • International politics
  • Research and surveys
  • State government procedures
  • Communications.

One of SIFMA’s fundamental goals is to build public confidence in the markets while providing an efficient and enhanced member network of access and forward-looking services. The organization also helps foster a knowledgeable industry by providing top-notch educational resources to industry professionals and the investors they serve.

SIFMA’s staff, members and committees focus on a wide range of issues that affect financial industry professionals and their clients. Some of these issues include market structure, tax reform, cybersecurity, infrastructure, and issues involving senior investors.

SIFMA has offices in New York and Washington, DC, and is the US regional member of the Global Financial Markets Association (GFMA).

History of SIFMA

The formation of SIFMA by the merger of the two associations of the financial sector took place in 2007. Its origins, however, go back much further. The evolution of the organization dates back to 1912, with the formation of the Investment Bankers Association of America.

The SIA would eventually join the Bond Market Association in 2007, to form what is now SIFMA.

What does SIFMA mean?

SIFMA is the abbreviation for Securities Industry and Financial Markets Association. They represent and defend professionals in the financial industry.

What is the SIFMA rate?

The amount charged by SIFMA for membership varies greatly depending on the type of organization you are in, as well as whether you are a professional organization or an individual client. They offer two membership plans: Full Membership which is for brokers, investment banks and asset managers, and Associate Membership which is for “other market participants”.

What is the SIFMA test?

The SIFMA test, referred to as the “industry-wide business continuity test”, is a test that highlights the ability of the financial industry to operate in the event of a major emergency using backup sites, facilities recovery and backup communication capabilities. The organization believes that all member companies should participate annually.

Is SIFMA a regulator?

SIFMA is not a regulatory agency. They advocate for finance professionals and provide market insight and although they may have commentary or provide data on the regulatory environment, they are not themselves a regulator.

What is the SIFMA Foundation?

The SIFMA Foundation offers financial programs and tools designed to educate market participants, whatever their background. The Foundation aims to strengthen economic opportunity in communities and increase awareness of the global marketplace. The Foundation supports teachers and key leaders in the field. On the SIFMA Foundation website, you can access tools and games designed to raise awareness and develop financial literacy.

The essential

SIFMA is an organization that provides financial information in order to advocate on behalf of its diverse and educated member base. Many of their research publications are free on their website and offer invaluable insight into individual segments of the global economy, as well as top-down insight into what’s happening across all securities and asset classes.

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