In my recent Forbes and BrokeAndBroker columns, I exposed the shenanigans attendant to jockeying at the House Financial Services Committee over whether self-regulation should be extended to the registered investment advisory (RIA)/financial planning sector. Pointedly, I took the Committee to task for its passage of both the McCarthy and Bachus amendments --- which, taken together, seemed an exercise in futility and a questionable plum for the Financial Industry Regulatory Authority (FINRA).
Apparently, my broadsides carried some weight and influence. The Committee's Chair, Rep. Frank (D. MA) has stated that he is going to move to repeal the Bachus amendment, which granted FINRA self-regulatory oversight over dually registered broker-dealers and RIAs.
I will take such little victories and will continue to stay on top of these developments.
BILL SINGER: Sometimes you run afoul of industry rules because you fail to realize the full reach of a rule. Registered reps may understand, for instance, that they can't dabble in mortgages but then fail to realize that a reverse mortgage is subject to the same rules. (ok, yes, this is shocking.) Alternatively, you may know that there are limits on what you can say at a seminar, but maybe you don't realize that those constraints extend to your seminar invitations or to the slides in your PowerPoint presentation. In fact, FINRA may consider your seminar materials to be advertising materials requiring filing and/or review.
To read more of Bill's Registered Rep. Magazine "Street Legal" column, visit:
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