Other Voices

IN Voices

Jan 26, 2014 @ 12:01 am (Updated 11:49 am) EST

Is Finra overreaching on expenses?

R

eporter Mason Braswell's article about how the Financial Industry Regulatory Authority Inc. has been cracking down on financial advisers who misreport expenses — even small ones — led most readers to charge that the regulator was overreaching, but some suggested that wasn't the case.

Unbelievably stupid overregulation. Best reason for less government!”

— Marvin Pheffer

Actually, it's a great move. Who would want an adviser/broker who is so corrupt and/or stupid as to cheat on his expense accounts? Anyone who works for a corporation knows in advance what is, and is not, an appropriate charge to expense. Accountability matters.”

— Reedrothchild

Overreach such as this by Finra is another reason to dump the B-D format, dump Finra and go RIA. Who needs "Death by Regulation?'”

— Stephen Barbe

True. The trouble with any soft regulatory scheme is that the maintenance of it gets incredibly complicated. Better to have simpler, stronger rules than complex regulation.” — loneMADman

Finra can bar someone for reporting batteries on an expense report, but they don't bar advisers who jump from firm to firm, repeatedly abusing customer accounts with inappropriate churn?”

— Candyce Edelen

Unless it involves an attempt to charge a customer's account, this is another area that Finra has no business prying into. Falsifying a corporate expense account should be overseen by and dealt with by the employing brokerage firm, not by Finra. Barring someone from the industry for something as inconsequential as charging a candy bar at a hotel gift shop while attending a convention is the height of stupidity and overreach.” — Ron Edde