SIFMA: Raise bar on settlement reporting

SIFMA wants Finra to raise the threshold for reporting settlements with customers to $25,000, from $10,000.
JUL 08, 2008
By  Bloomberg
The Securities Industry and Financial Markets Association wants the Financial Industry Regulatory Authority Inc. to raise the threshold for reporting legal settlements with customers to $25,000, from $10,000. The Wall Street trade group is urging the higher bar as part of its response to a proposal floated in April by Finra that seeks to close a reporting loophole. Both groups are based in New York and Washington. The loophole allows registered representatives to avoid reporting an arbitration claim if the lawsuit doesn't specifically name the rep as a respondent. As part of its proposal, Finra suggested raising the settlement reporting threshold to $15,000. But a higher threshold makes sense for Finra to implement based “on criteria they suggested [in the proposal], namely the increase in [arbitration] forum costs,” Kevin Carroll, associate general counsel at SIFMA, said today. Legal costs have risen significantly since 1996 when the $10,000 threshold was set, SIFMA wrote in a comment letter to Finra in May. Finra is still reviewing comments, according to spokesman Herb Prone. A final rule proposal would have to be filed with the Securities and Exchange Commission for approval. Mr. Carroll said that SIFMA is hopeful for a higher threshold because Finra is at least “predisposed to look” at raising the amount.

Latest News

JPMorgan tells fintech firms to start paying for customer data
JPMorgan tells fintech firms to start paying for customer data

The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.

FINRA snapshot shows concentration in largest firms, coastal states
FINRA snapshot shows concentration in largest firms, coastal states

The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.

Why advisors to divorcing couples shouldn't bet on who'll stay
Why advisors to divorcing couples shouldn't bet on who'll stay

Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.

SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives
SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives

With more than $13 billion in assets, American Portfolios Advisors closed last October.

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.