Seems like NASD and NYSE regulation can’t catch a break. First it was Muslims, now it’s the Financial Planning Association that is unhappy with the merged regulatory bodies’ potential new name.
The FPA said Tuesday that FINRA, which stands for Financial Industry Regulatory Authority and was proposed as the best alternative to the prior name SIRA, “is misleading to the public and should be withdrawn from consideration.” SIRA, which stands for Securities Industry Regulatory Authority, and was first announced in June, was dropped last week because of its potential to offend Muslims. Sira is also an Arabic word that refers to the traditional Muslim biographies of the prophet Mohammad.
In response to the FPA’s statement, NASD spokesman Howard Schloss says, "I would need a degree in psychology to comment on the level of paranoia in this press release."
The FPA claims that FINRA suggests a broad oversight of the financial services industry. But NASD does not have jurisdiction over other areas of the financial services industry, including the mortgage, banking, credit union, trust and insurance industries, investment advisers, mutual fund companies, and the financial planning profession.
FPA President Nicholas A. Nicolette, said in a statement, “The NASD, which stands for National Association of Securities Dealers, has a longstanding historical mandate to regulate broker-dealers and the organization’s merger with the New York Stock Exchange doesn’t change that core mission. A name that implies broader financial industry oversight might unintentionally mislead the public. The ‘financial industry’ tagline for a regulator would appear to be a seal of good housekeeping that protects the public in areas of the financial service sector where the NASD has no oversight authority.”