While legislation regarding adviser oversight has slowed, the debate has not. The latest facet of the debate is whether FINRA can really be characterized as an “independent regulator.”
While FINRA claims to be “the largest independent regulator for all securities firms doing business in the United States,” it is often criticized for being influenced by the industry it is supposed to regulate. Proponents of the SRO bill have launched a lobbying effort to boost FINRA’s image as an independent agency, and to dispel the “fox watching the henhouse” perception. However, its current governance includes 11 public members, 10 industry members and its chief executive, Richard G. Ketchum.
So far, advocates for both investors and advisers seem unimpressed. “You can call them independent, an SRO, a widget, a duck, whatever,” said David Tittsworth, executive director of the Investment Adviser Association.
“Ultimately, what you want is a regulator that’s accountable, that’s transparent, that’s effective and efficient. To me, FINRA doesn’t pass any of those tests.”
Eckerle Law offers a highest-quality and cost-effective alternative to the traditional law firm model for a wide variety of transactional and regulatory matters serving all your business law needs. Our experienced attorneys also provide a full range of compliance services for investment advisers, offering compliance tools that are tailored to fit the ever changing regulatory landscape as well as your business needs.
If your company would like to strengthen its business practices, please contact us today so we can leverage our experience to create real-life business and legal solutions to help your business thrive.