FINRA’s War on Small Broker Dealers – Michael Coffman: Agenda 21 Feudalism – Thomas Sowell: Federal Reserve a Cancer
Friday, February 24, 2012
On the Thursday, February 23 edition of Infowars Nightly News, host Paul Joseph Watson talks with Dr. Michael Coffman, CEO of Sovereignty International, who appears in Alex’s Endgame: Blueprint For Global Enslavement.
What is the relationship between an investor and his personal adviser? It is an agreement between one person to another that he would like to receive investment advice over personal financial matters. FINRA and the US government want to meddle in every aspect of this personal relationship and be privy to information most consider personal. Many investment choices that were once available are disappearing due to regulatory tyranny. What business does big brother have in invading this arena of economic life and privacy? The pressure has also been intensifying upon small broker dealers and driving many out of business.
FINRA Targeting Small Firms and Individual Brokers?
John Crudele at the NY Post recently penned a column Small Firms Claim FINRA Targets Them that is generating quite a reaction. We represent a large number of small firms, ranging from firms with 5 registered representatives to approximately 300 registered representatives, and our clients are the ones who originally alerted us to the article. There is a fair amount of truth to the article – FINRA is much more aggressive with small firms than it is with big firms.
Anyone who follows FINRA enforcement proceedings has a hint of the disparity, when we see wirehouses like Merrill Lynch and Bank of America receive the equlvalent of wrist-slap fines for their violations. What the general public does not know is that for the same violation at any of the other 4,000 firms in the country the fine would be multiples, on a percentage basis, against the small firm, and the charges would include charges against individuals at the firm, not just the firm. When was the last time you saw FINRA name Ken Lewis or John Thain in an enforcement proceeding? Don’t bother looking, it has never happened, but take a look at how often they name the president or senior executiveof a BD with hundreds of brokers as a respondent.
The simple fact is that FINRA is out to show how tough it is which causes numerous problems. FINRA examiners simply love to spend months at a firm during a routine audit – yes, I said months. Imagine trying to run your business while you have to dedicate a conference room to two examiners, provide them with a staff member to fetch documents and make copies for them, and make yourself available on a moments notice to answer questions. Now imagine that going on for 4 or 5 or 8 months, every day.
This of course is in addition to the hours spent complying with the morass of rules and regulations that often do not apply to your particular business model, knowing all the while that one missed form, one account not verified, or one other slip up could cost you a fine starting at $2,500.00. It is not a pleasant existence.
And FINRA knows that the small broker-dealers, and individual brokers, cannot afford the fight – so FINRA brings the fight, but brings it against the small broker-dealers and individual brokers, betting on the fact that the firm cannot afford to fight and will therefore settle the charges, regardless of how questionable the charges. It happens every day.
But now smaller firms and individuals are starting to fight back and are devoting the resources to defend themselves against the FINRA onslaught. And we are starting to see a turn in the statistics.
The heavy-handed issue remains, and Mr. Crudele has now posted a followup, – Tales from Wall St. about heavy-handed Finra detailing the reaction he has received to the original article and promising more articles on FINRA’s apparent desire to destroy the small broker-dealer industry.
Related articles, courtesy of Zemanta:
- SEC Withholds Records on Oversight of Self-Regulatory Group
- Postcrisis, a Regulator Moves to Expand Power Over Wall St.
- UPDATE 3-UBS fined for playing down Lehman risk to clients
- UPDATE 1-FINRA fines Deutsche Bank $7.5 mln
- Merrill and Credit Suisse Fined for Subprime Deals