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This February, the Financial Industry Regulatory Authority, Inc.
( FINRA ) released its Report on FINRA s Examination
and Risk Monitoring program (the Report ).
1
The Report replaces FINRA s former Report on FINRA Examination
Findings and Observations, and its Risk Monitoring and Examination
Priorities Letter. The Report, in its new format, will be released
annually.
The Report covers a broad spectrum of issues. This article
focuses on areas of interest to the structured products
industry.
REGULATION BEST INTEREST
This part of the Report generally asks firms whether they have
Finra suspension of in-person arb hearings harms investors, PIABA says
The regulator has extended its postponement of in-person arbitration proceedings through July 2, but says it expects to resume normal proceedings in some locations as coronavirus vaccinations increase.
April 27, 2021 3 MINS
Finra’s ongoing suspension of in-person arbitration hearings protects brokers while harming investors involved in disputes, the Public Investors Advocate Bar Association asserted Monday.
The Financial Industry Regulatory Authority Inc. halted in-person arbitration proceedings when the coronavirus pandemic broke out more than a year ago. It has extended the postponement through July 2.
PIABA President David P. Meyer criticized the broker-dealer self-regulator for not explaining what health thresholds must be met to resume in-person hearings.
Bills to end mandatory arbitration introduced in House, Senate
The Securities Industry and Financial Markets Association opposes the bill, saying arbitration promotes fair, efficient, and economical dispute resolution for all parties.
April 16, 2021 3 MINS
Advocates for ending mandatory arbitration are hopeful that the political atmosphere is right to advance legislation introduced in Congress this week.
On Thursday, Sen. Jeff Merkley, D-Ore., and Rep. Bill Foster, D-Ill., offered bills in their respective chambers, the Investors Choice Act, that would ban pre-dispute mandatory arbitration agreements in brokerage and investment advisory customer contracts. The bill also would prohibit contract clauses that prevent class action lawsuits.
Gary Gensler
His slim Senate confirmation margin reflects GOP concerns about the aggressive approach Gensler has signaled on issues like expanding corporate disclosures related to environmental, social and governance factors.
April 15, 2021 3 MINS
Gary Gensler had little room to spare in Wednesday’s Senate vote that confirmed him as the new chairman of the Securities and Exchange Commission, but nearly unanimous Republican opposition probably won’t slow his agenda.
The Senate approved Gensler, 53-45, with three Republicans joining the chamber’s 50 Democrats in one of the closest votes for a Biden administration nominee. The slim margin reflects GOP concerns about the aggressive approach Gensler has signaled on issues like expanding corporate disclosures related to environmental, social and governance factors.
Addressing the financial literacy crisis facing women in America
Society must integrate financial awareness into education, as men, and particularly women, need to improve their financial knowledge.
April 12, 2021 2 MINS
The lack of financial literacy is perhaps one of the defining failures of the American educational system. Here is a disturbing irony: Americans represent the world’s most powerful economy, yet according to Brianna Lee Welsh, writing for medium.com, we spend two cents on financial literacy for every $100 spent on education. Welsh reports that this startling figure translates to the following set of disturbing numbers:
40% of adults rate their own knowledge of personal finance as extremely low and state that they need guidance.