'Dissident' candidate defeats Finra's hand-picked nominee for board seat

Brian Kovack wants to make the organization more effective without antagonizing firms that are doing the right thing
OCT 30, 2015
An executive of an independent broker-dealer won a seat on the Finra board Thursday after waging what he called a “dissident” campaign. Brian Kovack, president and co-founder of Kovack Securities Inc., was elected to a mid-size firm seat by members of the Financial Industry Regulatory Authority Inc. He beat John Muschalek, vice chairman of First Southwest Co., who was nominated by a Finra committee. Mr. Kovack put himself on the ballot by gathering enough petitions to qualify. In other voting results, Joe Romano, president of Romano Wealth Management, won a small-firm seat, defeating Stephen A. Kohn, president and chief executive of Stephen A. Kohn & Associates. Both Mr. Romano and Mr. Kohn became candidates through petitions. Finra did not nominate a candidate for the small-firm seat. John Thiel, head of Merrill Lynch Wealth Management, was elected to a large-firm seat. He was nominated by Finra and ran unopposed. Two people were appointed to the Finra board Thursday. Kathleen Murphy, president of Personal Investing, a Fidelity Investments company, became an industry governor. Randal K. Quarles, managing partner and co-founder of The Cynosure Group, became a public governor. In his campaign, Mr. Kovack said he wanted to join the Finra board to keep it from “antagonizing” its members, especially independent broker-dealers. “I'd like to actively challenge Finra in certain areas,” Mr. Kovack said. “I'd like to see some reform and make the organization more effective without unnecessarily antagonizing member firms who are trying to do the right thing for clients.” Mr. Romano touted his experience in the Finra governance system. He is serving this year as chairman of the Small Firm Advisory Board. “We need more than just griping,” he said. “We need someone who can advocate solutions.” The new members will serve three-year terms. The Finra board consists of 24 members, 13 of whom do not have industry ties. Another 10 work for brokerage firms. The board chairman is Richard Ketchum, Finra's chief executive.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.