Other Voices

IN Voices

Jan 26, 2014 @ 12:01 am

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

0
Comments

What do you think?

View comments

Recommended for you

Latest news & opinion

The appeal and pitfalls of holding unconventional assets in retirement accounts

While non-traditional asset classes held in individual retirement accounts may have return and portfolio diversification benefits, there are "unique complexities" that limit their value for most investors.

Wells Fargo's move to boost signing bonuses could give it a lift

Wirehouse is seen as trying to shore up adviser ranks that took a hit after banking scandal

New Jersey fines David Lerner Associates for nontraded REIT sales

Firm will pay $650,000 for suitability, compliance and books and records violations.

Report predicts $400 trillion retirement savings gap by 2050

Shortfall driven by longer life spans and disappointing investment returns.

Wells Fargo will ramp up spending to lure brokers

Wirehouse, after losing 400 brokers in first quarter, is bucking trend among rivals who have said they are going to cut back on spending big bucks recruiting veteran advisers

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print