Tuesday, August 25, 2009
Finra sticks to its guns in flap about oversight of B-Ds dishing advice
Finra isn't backing down from its position that it has jurisdiction over broker-dealers' financial planning activities.
Following a letter sent to the Securities and Exchange Commission last week by the Financial Planning Association, The Financial Industry Regulatory Authority Inc. executive vice president Tom Selman insisted that the self-regulatory organization acted entirely within its power Aug. 6 when it fined Ameritas Investment Corp., a dually registered broker-dealer and investment adviser, and one of its former registered representatives, for advertising and sales violations involving misleading financial plans.
“Ameritas is a case in which clearly, Finra has jurisdiction be-cause 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...”
Investment News: Finra sticks to its guns in flap about oversight of B-Ds dishing advice
Following a letter sent to the Securities and Exchange Commission last week by the Financial Planning Association, The Financial Industry Regulatory Authority Inc. executive vice president Tom Selman insisted that the self-regulatory organization acted entirely within its power Aug. 6 when it fined Ameritas Investment Corp., a dually registered broker-dealer and investment adviser, and one of its former registered representatives, for advertising and sales violations involving misleading financial plans.
“Ameritas is a case in which clearly, Finra has jurisdiction be-cause 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...”
Investment News: Finra sticks to its guns in flap about oversight of B-Ds dishing advice
Permalink posted by markw @ 4:29 AM 
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