Keenan beats out two others for small-firm seat on Finra board

Robert Keenan, chief executive of St. Bernard Financial Services Inc. in Russellville, Ark., has won a small-firm seat on the Financial Industry Regulatory Authority Inc. board.
Mr. Keenan beat out two competing candidates, Jed Bandes, president of Mutual Trust Co. of America Securities and David Sobel, general counsel at Abel/Noser Corp. Mr. Keenan got 489 votes, Mr. Bandes 463 and Mr. Sobel 384.
Finra announced the results yesterday after concluding its annual meeting.
Small-firm candidates represent broker-dealers with no more than 150 registered representatives.
“I was campaigning on the fact that I own and operate a retail broker-dealer,” said Mr. Keenan, whose three-year term starts immediately. He called for more guidance from Finra to help small firms meet regulatory requirements.
Mr. Keenan also said he contacted all 3,883 small firms, asking for their votes.
As for his opponents, Mr. Sobel was perhaps considered a “compliance attorney,” Mr. Keenan added, and Mr. Bandes was hurt by his 2010 board vote supporting Finra’s action to reject several transparency-related proxy proposals that were approved by members.
Mr. Bandes had supported the proposals when he ran for the board earlier that year.
Mr. Bandes did not return a call for comment.
In an email, Mr. Sobel congratulated Mr. Keenan, adding that small-firm candidates get “caught up in the fight trying to establish their own personalities” by inundating small firms with solicitations.
Mr. Sobel noted that less than 35% of small firms voted. The lack of interest sends “a very distinct message to the Finra senior staff: ‘We don’t care, do what you will to us,’” he said.
Mr. Sobel and Mr. Bandes were not available for comment.
James Weddle, managing partner at Edward Jones, won an uncontested race for a large-firm seat.
Finra’s 22-person board has 11 public governors and 10 industry members. Finra chief executive Richard Ketchum holds the remaining seat and heads the board.