Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
May 11 — A bipartisan pair of senators chided the Financial Industry Regulatory Authority for not doing enough to ferret out misconduct among broker-dealers.
“We write today to ask what specific steps FINRA will take to address the pervasive misconduct among its financial advisers,” Sens. Elizabeth Warren (D-Mass.) and Tom Cotton (R-Ark.) said in a May 11 letter to FINRA Chairman Richard Ketchum.
The senators cited a working paper from University of Chicago and University of Minnesota academics earlier in the year that used FINRA BrokerCheck data to conclude that roughly 7 percent of all brokers have been sanctioned for misconduct (41 SLD, 3/2/16)
“This study demonstrates that FINRA is not doing nearly enough to fulfill its investor protection mission,” the senators, both members of the Senate Banking Committee, wrote.
The study also found that among advisers who were fired for misconduct, nearly half found new jobs in the industry within a year.
“We’ve received the Senators’ letter, share their concerns about these issues, and are pursuing measures to address them,” a FINRA representative told Bloomberg BNA in an e-mail. “FINRA looks forward to working with them on these and other important investor protection issues.”
“FINRA has a paramount responsibility to protect investors by addressing misconduct by financial advisers,” Warren and Cotton wrote. “The risks to investors posed by advisers with a disciplinary history are disturbing—but they are not unpredictable.”
The senators asked the self-regulatory organization what steps it is taking to address misconduct, recidivism and firms that hire numerous advisers with disciplinary records. The study found, for example, that nearly 20 percent of the more than 2,000 financial advisers at Oppenheimer & Co. had been disciplined for misconduct.
Their letter refers to “financial advisers,” which was defined in the study as “all brokers and the set of investment advisers on BrokerCheck who are also registered as brokers.”
To contact the reporter on this story: Rob Tricchinelli in Washington at email@example.com
To contact the editor responsible for this story: Phyllis Diamond at firstname.lastname@example.org
For the letter, visit http://www.warren.senate.gov/files/documents/2016-5-11_Warren-Cotton_Letter_to_FINRA.pdf
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)