The story of FINRA's implacable drift from its founding ideals to a pallid 'no-lying baseline'
In Part 2 of a four-part series, our one-man think tank narrates the back story of today's fiduciary standoff, getting to the root of the 'insidious conflicts' that made the terms 'broker' and 'trustee' oxymoronic
For Congressmen(women) who require the SEC and DOL to go slow on Dodd-Frank implementation, for industry apologist insular to the best interests of the investing public and for Regulators who are genuinely concerned about the loss of trust and confidence of the investing public in our leading financial services institutions—Ron Rhoades documentation of mission creep from the founding principles of broker regulation is a must read.
Ron raises the question of public trust as envisioned by Senator Maloney in establishing the founding principles of industry regulation. When left to the industry, regulation quickly became insular to the best interests of the investing public which has lead to the loss of trust and confidence of the consumer and increasingly brokers whose reputations are being placed at cross purposes to their client’s best interests by industry practices.
The seminal distinction is how under the auspices of FINRA and the SIFMA could the industry make it a violation of internal compliance protocol for brokers to acknowledge they render advice and have ongoing fiduciary duties to act in the consumer’s best interest. Clearly, the consumer’s best interest was and is not a consideration.
Ron Rhoades makes a beautifully well documented case for the regulatory authority granted to FINRA has lost its initial purpose, and has in fact become counter to the best interests of the investing public.
This is a must read and should be widely dissemimated by all who care about public trust and professional standing to include Congressional policy makers, industry executives and regulators who fein ignorance.
Charles 'Chuck Schwab' called James Gorman to protest a two-broker poach, kicking off a hydra-headed legal battle, costing Morgan Stanley millions, so far
The Schwab founder and chairman invoked Charles Schwab Corp.'s zero-tolerance policy against Wall Street -- or RIA -- poaching of talent and AUM from Schwab branches.
March 9, 2023 at 1:23 AM
Why FINRA's late appearance into smoothie-throwing broker James Iannazzo's life might be rough
It's been about 11 months since Merrill Lynch fired him, and the CFP Board stripped him of the CFP mark; attracting the SRO's attention means more woes.
December 29, 2022 at 1:05 AM
Biz Briefs: SEC cracks down anew on RIA reverse churning ~ Envestnet borrows $350 million to buy its own stock ~ Fidelity is creating a crypto waiting list while exec questions crypto ecosystem
Fed up SEC is ready to take on all nonsense at once; stock shocks, Orwell's new name game; Fidelity hosts a line dance