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FINRA Responds to Critics, Saying It Is too an Effective Regulator

October 18, 2011

David A. Geracioti


Registered Rep. Magazine

[email protected]

Dear Mr. Geracioti

The assertion made in the Oct. 6 Op-Ed by Andrew Haigney that FINRA is an ineffective regulator is

unfounded. We recognize it’s more important than ever for regulators to be nimble, and in recent years

have made important changes to enhance our examination and enforcement programs to better

identify and respond quickly to fraud. FINRA is the primary driver of moving people who engage in

misconduct out of the securities industry as quickly as possible to prevent customer harm.

Since 2001, FINRA has brought 12,655 disciplinary actions, expelled 187 firms, barred 4,003 individuals

and suspended 3,541 more from the securities industry. In 2011 (Jan — Sept), FINRA has brought 1,067

disciplinary actions, expelled 13 firms, barred 236 individuals and suspended 315 more from the

securities industry.

Mr. Haigney’s op-ed needs to be seen for what it is — the opinion of a registered IA who likes the current

system where an investment adviser firm can go 10 years without being examined. That kind of

oversight is simply unacceptable in a regulatory environment committed to putting investors first.


Howard M. Schloss

Exec VP, Corporate Communications



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