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Article: Finra: Layoffs don't excuse lax oversight; Regulator warns B-Ds against gutting compliance, finance and operations.
- Article from:
- Investment News
- Article date:
- March 23, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Bruce Kelly
Finra has put its broker-dealer members on notice that regulators won't tolerate any cutting of corners as firms try to reduce costs in a punishing business environment.
In addition, the Financial Industry Regulatory Authority Inc. warned broker-dealers to be extremely vigilant of registered representatives' and advisers' selling any new investment products as a way to generate fees in the face of a stock market that has dropped 50% since October 2007.
In a wide-ranging March 12 letter about upcoming exam priorities to its more than 5,000 broker-dealer members, Finra officials warned broker-dealer executives not to neglect ...