Metaphors...Has Finra/SEC gone bonkers?

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Apr 4, 2011 10:45 am

Have you heard?

The SEC in its infinite wisdom is considering banning FA's from using descriptive words such as "Bull" or "Bear" etc. Modern Portfolio Theory are also words that we would not be allowed to use when talking to clients.

I don't know about you, but I thought the public was concerned about Wall Street abuses, you know, like the CDO shenanigans, the 1M office remodel, the Spa Extravaganza for AIG execs, the exhorbitant CEO pay. ..Pick your scandal.

Nah...They are worrried because a neuroscients or two thinks we can manipulate the public with our words.

I say it's time to stand up to these regulators and tell our Congressman to represent us (I mean protect us from them). When regulators think that the public can't protect itself, and are not protecting the public, stupidity reigns. This is proof of it. Write your congressman and tell them the Fed is ready to regulate freen speech.

Our Founding Fathers are squirming. I hope you are too.

Apr 4, 2011 12:58 pm

Some people grow up disadvantaged - they are lucky to attain a third grade reading level in school. We must protect these people from themselves and bad capitalists who would exploit them. In order to uplift them, we must regulate calories and fat and even words. Most importantly, we must ensure that the central planners can continue to eat steak and imported wine and cheese. Even Hollywood is threatened by competiton. Fortunately, Chris Dodd is now  representing Hollywood in Washington.

Oops, wrong link.

"Funny" how all of the progressives here disappeared.

Apr 4, 2011 3:03 pm

THis country is lost. I'm just enjoying the white knuckled ride, hoping I die before it gets really ugly.

I can legally live and work in the USA, Canada, and Europe. So, maybe one day I just move to the one that is less likely to kill me physically or financially.

Apr 4, 2011 3:27 pm

And it has long been practice that FINRA/NASD, punishes the foot soldiers for the crimes of the executives. Check out the regulations that pertain to political contributions.

Remember, free speech was first and foremost regarding religion and politics. Now, as a rep, you'd better really watch your step on contributions to local politicians.

I've told my clients for years, that there are very few "givens" when it comes to investing. About the only two that I can think of, are corruption and stupidity. I try to use that to my advantage. Things are really high/low, most often due to those to given market factors. It's my way of taking a horribly depressing subject, spinning it into a positive....

Apr 4, 2011 3:41 pm

FINRA is slated to hire 50,000 "metaphor minders" to sit-in on client meetings to confirm that advisors are conforming to the new "proposed" rule.

Can you imagine, Mr. and Mrs. Jones. I would like to introduce you to the SEC regulator who is here today to make sure I don't influence you with my words.

Maybe Obama only heard the words 50K new jobs and his staffers didn't take the time to find out what they would be doing...Write your congressmen, folks, this is the most ridiculuous proposed mandate which is tantamount to an attack on the financial advisory practice and would change our roles dramatically.

The slippery slope would be a full-fledged mudslide where the regulators would take over the client meeting...

They wouldn't dare regulate their country club mates.

Apr 4, 2011 3:59 pm

WTF? Are you serious? They're going to hire 50k more people, to monitor reps, are you serious?

WHere can we read more about this?

Apr 4, 2011 4:33 pm

Check out this link...

Apr 4, 2011 4:35 pm

If you subscribe to horsemouth you can find it there or PM me and I will send you a copy. I am forwarding to everyone I know because I believe this to be an attack on our industry by a far-reaching politically oriented government official.

Politically most of us lean to the conservative side. This however is far reaching and crosses all political lines.

Apr 4, 2011 5:12 pm

Not to rain on your frustration with regulators, but this was an April Fool's post.

Apr 4, 2011 5:19 pm

Why I'm afraid to go RIA.

Operating under FINRA would put advisors at a competitive disadvantage, some of them fear. "The FINRA board would love to control the regulatory structure of broker-dealers' biggest competitors, the independent RIA firms," says planning industry expert Bob Veres, who believes that FINRA is too close to the brokers it regulates. The board "would create a regulatory landscape that would make it much more difficult for that competition to thrive."

FINRA dismisses all the advisor hand-wringing, however. Ketchum, in his letter to the SEC, points out that the agency still will review FINRA decisions, and that advisors will sit on the organization's board. FINRA would set up a separate affiliate to handle RIAs, he says.

Showing how deep RIA antipathy toward FINRA runs, some in the advisor community perceive an SEC plot to hand them over to the SRO's ministrations. "FINRA has friends at the SEC," says David Tittsworth, executive director of the IAA. "That's no secret."

Indeed, two of the five SEC commissioners have ties to FINRA. Chair Mary Schapiro previously served as head of FINRA, and received a $9 million pay package upon departing. And Elisse Walter was a FINRA official before becoming a commissioner. The SEC won't comment on these suspicions: A spokesman responds that all it will say about the RIA regulation issue is already in its study.

Apr 4, 2011 5:51 pm

This wasn't real....

Apr 4, 2011 5:52 pm

The post was published on April 1. The so called meeting was the day before. I have left a message for Sean Bailey from Horsesmouth to see if in fact this was a joke. Quoting the SEC Chair seems a bit irregular if it isn't true but I did note the date.

If it is true, then I would expect a backlash that the SEC has never seen. If it is a hoax, then perhaps we need to take the publications like this and make them accountable to the regulators....Can you imagine somebody else telling the publications that they can't use metaphors etc!

Tune in for more later...

Apr 5, 2011 9:58 am

It's been a while since I bashed Jones. Too busy building and managing the biz. I was in a 24 class last week and am heightened to regulatory issues. The release was picked up by investment news and I found others who had commented.

It is intersesting to note that publications can essentially say anything they want true or not....We are definitely held to a standard.

Alas, Ice I think you may be on to something. I am going back to work.

Apr 5, 2011 11:10 am

"what a bunch of ultra-moroons." Bugs Bunny.

Happy April Fools day!

Apr 5, 2011 12:32 pm

There is much to be learned by this thread...

Be a cynic, even of cynics Fact check, do my/your own homework Know that if you stick your neck out, someone is anxiously waiting to crush your throat Stay focused on what matters, don't get easily distracted Give it some thought, before you act/react to a situation People are far more likely to lie or be wrong, than tell the truth When you're wrong, admit it, even in the face of rude criticiism. That is what a gentleman does. Again, trust nobody. They are out to get you.  
Apr 5, 2011 1:16 pm

My question is, how will Phil play this weekend?

Apr 5, 2011 4:04 pm

I think he's going to be a serious contender, might win it. He's the legitimate favorite for sure. But, there's lots of talent there, and it doesn't take too many errant shots by anyone to sink their chances. I'm definitely looking forward to it, this should be a great Masters. 

Frankly, I'd like to see Westwood win it, as he's been close now in the majors a number of times. He's a gracious and talented competitor.

Last year, the online coverage at was increditbly good, and was able to have better than tv coverage right here at the office.

Apr 5, 2011 7:13 pm

Great tip, will definitely check it out at the office.

I'd like to learn a little more about Westwood this week. Masters Week! An entire week steeped in the grand old traditions of golf. Just finished reading The Match ( Byron, Ben, Harvie Ward and Kennie Ventura). ( Bing Crosby's clam bake at Cypress Pointe).

Man, we need some warmer weather. Playing in a Masters event with a client, praying for sun! I LOVE GOLF. ( I guess we have that in common with the president, but if I had the opportunity, I would prefer to golf with a former president.)

Apr 5, 2011 9:26 pm

I'd like to golf with Bill Clinton, Rush Limbaugh, and George Bush. Man, we'd have a blast.

I'd rather golf with those guys, than Tiger Woods.

Yeah, the weather has been EPIC bad. Skiing was good, but I'm ready for some dry weather for crying out loud. I'd like to be able to sit on the grass some day without my butt getting wet/muddy. Worst weather we've ever had around here.... Man, give me some good numbers and all, I'm buying a practice/place in the desert as fast as I can.

Apr 5, 2011 10:24 pm

Haha, yeah, I'm licensed in some sunny golf states now and could write off trips. Things are looking better. I think Rush would get pissed at Bill, not because of politics, but I hear Clinton is pretty loose with the mulligans. Now, when was the last time you took a mulligan? I'd drink with him, though.