UNLOCK THE POWER OF THE VAULT

Broker-Dealers Call for End to Regulation by Enforcement

June 28, 2017

Broker-Dealers Call for End to Regulation by Enforcement

June 26, 2017 | by Rita Raagas De Ramos | Financial Advisor IQ

Executives at broker-dealer firms speaking at a compliance trends panel during Finra’s annual conference last month were united in calling for an end to regulation by enforcement. In its place they want succinct, clear, tell-it-as-it-is guidelines.

“We’d like to get back to regulation by guidance – an environment we had in what seems like a million years ago, when we received a lot more solid guidance about what Finra and other regulators had seen in their audits and in the industry as a whole,” said Amy Webber, president and CEO of Cambridge Investment Research. A regulation by enforcement culture encourages broker-dealers to “always be on the defense, she added.

Finra CEO Robert Cook has said the self-regulator is continuing to gather input and to identify improvements that can be done during an ongoing comprehensive self-evaluation and organizational review, referred to as Finra 360. “We are committed … to take a fresh look at what we do today and to provide greater transparency and guidance to the industry where appropriate,” he said.

Read Full Article Here

Print Friendly, PDF & Email
Go Back
Ramón A. Rivera-Ramos
Blue Vault Nontraded REIT and Nontraded BDC Reviews
September 1, 2016

Blue Vault helps me to stay well informed on the financial status of both open and closed nontraded REITs and BDCs, so that I can help my clients better understand the product, before they make the decision to invest and after.