FINRA Defends Its Authority Over B-D's Dispensing Financial Advice

FINRA Defends Its Authority Over B-D's Dispensing Financial Advice - 8/19/2009 , Class Action News, Class Action, Securities News, shareholder class action, claim, litigation, securities action, common stock'>

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright © 2001
Stanford Law School

2009 News and Press Releases

SEARCH

News	News 2009
HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

FINRA Defends Its Authority Over B-D's Dispensing Financial Advice
Sara Hansard

InvestmentNews. August 19, 2009
_________________________________________________________________________

EXCERPT: The Financial Industry Regulatory Authority Inc. isn't backing down from its position that it has authority over broker-dealers' financial planning activities. Finra executive vice president Tom Selman maintained today it was entirely within Finra's authority to take action against Ameritas Investment Corp., a dually registered broker-dealer and investment adviser based in Lincoln, Neb., and one of its registered representatives, for advertising and sales violations involving misleading financial plans. “Ameritas is a case in which clearly Finra has jurisdiction because Ameritas is a broker-dealer, [the rep] was acting as a broker-dealer, she was selling securities products, and they were all doing this through the broker-dealer business,” he said. “The jurisdiction of Finra is clear.” The Financial Planning Association yesterday urged the Securities and Exchange Commission to restrict Finra's enforcement power. In a letter to SEC Chairman Mary Schapiro, the FPA urged the commission to clarify and restrict the scope of the self-regulatory body's authority. “Due to Finra's absence of legal authority to regulate broad financial planning activities, and to its inability to impose a fiduciary standard that would enhance investor protection, we believe this task is best carried out by the SEC,” FPA president Richard Salmen wrote. Mr. Salmen is also a senior vice president at GTrust Financial Partners of Topeka, Kan., which manages $400 million.

Back to News page | Back to Archived News 2009 page | Back to Top

�