Case in Point

Saving the Small Broker Dealer

Not that long ago there were 6,000 broker/dealers registered with FINRA. Now there are 4,000. Is there a future for the small and mid-sized broker/dealer? Bill Singer speaks to Martin Kaplan, partner with Gusrae Kaplan Nusbaum, on the current “draconian” regulatory environment under the Financial Industry Regulatory Authority. FINRA values “putting notches on the regulatory belt and extracting large amounts of money from firms that can least afford it,” he says. Kaplan argues for a regulatory regime that assists broker/dealers in complying with the law, as opposed to the “inquisition-like” pursuit of small, unintended violations of burdensome codes. “It is a system that is troubled when you have to balance your budget by fining your members,” he says.

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