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Article: Finra must review its exam process for broker-dealers; Serious self-assessment exposes weaknesses at self-regulator.(News)
- Article from:
- Investment News
- Article date:
- October 12, 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
A recent report that details Finra's inability to detect R. Allen Stanford's long-running, $7.2 billion fraud clearly shows that the securities industry self-regulator has gaping and significant problems related to its exams of broker-dealers.
The Financial Industry Regulatory Authority Inc. needs to address those shortcomings right away if it is to fulfill its stated mission of protecting investors.
To be sure, Finra has huge scope. At the end of last year, it oversaw 4,895 broker-dealers and 664,975 registered representatives.
Titled "Report of the 2009 Special Review Committee on Finra's Examination Program in ...