'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

Kestra adds Raymond James recruiter to expand advisor hiring push
Kestra adds Raymond James recruiter to expand advisor hiring push

The independent broker-dealer expands its business development bench with a new recruiter and an internal promotion in the West.

Cerity Partners names Will Peng chief innovation officer
Cerity Partners names Will Peng chief innovation officer

The leading ultra-high-net-worth RIA joins other large wealth firms, including Raymond James and LPL, in creating executive roles focused on artificial intelligence strategy

BlackRock expands Aladdin's private markets benchmarking tools
BlackRock expands Aladdin's private markets benchmarking tools

New Preqin-powered benchmarks add transparency to private equity and credit performance across BlackRock's platforms.

Fed's Bowman pushes for lighter-touch AI oversight at smaller firms
Fed's Bowman pushes for lighter-touch AI oversight at smaller firms

Supervision vice chair speaks following recent launch of AI adoption practices by regulators.

Why fixed income still belongs in your clients' portfolios
Why fixed income still belongs in your clients' portfolios

In an era of AI euphoria and market FOMO, getting back to basics with fixed income may be the most contrarian and most important move advisors can make.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.