Comments on: FINRA Announces Creation of “Office of the Whistleblower” http://www.compliancebuilding.com/2009/03/10/finra-announces-creation-of-office-of-the-whistleblower/ Doug Cornelius on compliance and business ethics for private equity real estate Mon, 13 Feb 2012 12:56:20 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mingy http://www.compliancebuilding.com/2009/03/10/finra-announces-creation-of-office-of-the-whistleblower/comment-page-1/#comment-3732 Mingy Wed, 30 Dec 2009 00:04:06 +0000 http://www.compliancebuilding.com/?p=1728#comment-3732 Finra is a joke. Look who its ran by, the Banks, Broker Dealers, and Market Makers. And there job is to regulate themselves? Its like the fox guarding the henhouse. Honestly, its pretty shocking this doesn't get more attention. Finra is a joke. Look who its ran by, the Banks, Broker Dealers, and Market Makers. And there job is to regulate themselves? Its like the fox guarding the henhouse.

Honestly, its pretty shocking this doesn’t get more attention.

]]> By: Mel http://www.compliancebuilding.com/2009/03/10/finra-announces-creation-of-office-of-the-whistleblower/comment-page-1/#comment-2052 Mel Fri, 09 Oct 2009 21:49:33 +0000 http://www.compliancebuilding.com/?p=1728#comment-2052 I've calledd the hotline and left a complaint, 1 month, 6 months and 1 year ago about a firm and FINRA has done nothing. I called just to check if they had the complaint on file and was told they had not received the information. This particuliar firm has violated 20 different rules and FINRA does nothing. I gave specific details regardig the violtaions and directed them to the specific Rules in their manual. Again they did nothing. Of the 6500 complaints they receive a year less than 1% are looked into and even fewer ever receive any real attention. The cases we hear about are those inwhich investors hire high powered law firms, then and only then does FINRA lift a finger to get involved. once they are involved, it becomes a news story posted in every news outlet. This is done to give the public the illusion they are regulating the industry when in fact they are destroying the indutry. Arbitration is a requirement, yet the fees and process is so stacked against investors its scary. Most arbitration cases are dismissed or settled. Even in these situations FINRA seldom steps in to investigate 'why the settlement' who violated rules etc. Any Advisor can violate 100 FINRA rules, get taken to arbitration, pay .10 cents on a dollar and never have to worry about it or FINRA again. Its very cost effective for firms cheating and stealing from investors and its allowed by FINRA. FINRA's position, 'okay you violated the rules, your client lost money, just pay the client back and its all okay. Firms absolutely love it, plus FINRA collects the arbitration fees adn the fines. The brokerage firm or investment advisor gets to do it again and again. There are registered brokers out there that have more than 100 arbitration cases they settled and thy still get to stay in the businss. As long as they settle, pay a fine its okay. Unlike Civil or criminal court where prior acts are counted. In FINRA's world prior acts are counted only in $ dollar amounts. FINRA is the biggest money grubbing non-profit in the World. The number of proposed rule changes, new requirements etc are also an effort to deceive the investing public. The organization can't police and enfore the current rules on the books but they continue to churn out more and more rules, most designed to rake in more and more fees, because they know most firms will not follow the rules. They figure the more rules the more fines they can rake in and the more revenue and cash in the bank. Where does this revenue go. Well we know FINRA has billions of dollars socked away in investments. They have some of the most impressive and expensive office space in the industry. They have an office in every major city, District offices etc. If the state regulatory agencies are doing their job, why does FINRA need massive district offices in every city. They have hundreds of different departments, call centers, legal, Mediation Department, Arbitration Department, Complaint Department etc etc. Most departments don't communicate with each other, few of the departments ever get any real training and 80% of the oganization is just clerks, regardless of the titles. Non have any real authority and few read or know where to find their own regulations they are suppose to enforce. I’ve calledd the hotline and left a complaint, 1 month, 6 months and 1 year ago about a firm and FINRA has done nothing. I called just to check if they had the complaint on file and was told they had not received the information. This particuliar firm has violated 20 different rules and FINRA does nothing. I gave specific details regardig the violtaions and directed them to the specific Rules in their manual. Again they did nothing. Of the 6500 complaints they receive a year less than 1% are looked into and even fewer ever receive any real attention. The cases we hear about are those inwhich investors hire high powered law firms, then and only then does FINRA lift a finger to get involved. once they are involved, it becomes a news story posted in every news outlet. This is done to give the public the illusion they are regulating the industry when in fact they are destroying the indutry. Arbitration is a requirement, yet the fees and process is so stacked against investors its scary. Most arbitration cases are dismissed or settled. Even in these situations FINRA seldom steps in to investigate ‘why the settlement’ who violated rules etc. Any Advisor can violate 100 FINRA rules, get taken to arbitration, pay .10 cents on a dollar and never have to worry about it or FINRA again. Its very cost effective for firms cheating and stealing from investors and its allowed by FINRA. FINRA’s position, ‘okay you violated the rules, your client lost money, just pay the client back and its all okay. Firms absolutely love it, plus FINRA collects the arbitration fees adn the fines. The brokerage firm or investment advisor gets to do it again and again. There are registered brokers out there that have more than 100 arbitration cases they settled and thy still get to stay in the businss. As long as they settle, pay a fine its okay. Unlike Civil or criminal court where prior acts are counted. In FINRA’s world prior acts are counted only in $ dollar amounts. FINRA is the biggest money grubbing non-profit in the World.

The number of proposed rule changes, new requirements etc are also an effort to deceive the investing public. The organization can’t police and enfore the current rules on the books but they continue to churn out more and more rules, most designed to rake in more and more fees, because they know most firms will not follow the rules. They figure the more rules the more fines they can rake in and the more revenue and cash in the bank. Where does this revenue go. Well we know FINRA has billions of dollars socked away in investments. They have some of the most impressive and expensive office space in the industry. They have an office in every major city, District offices etc. If the state regulatory agencies are doing their job, why does FINRA need massive district offices in every city. They have hundreds of different departments, call centers, legal, Mediation Department, Arbitration Department, Complaint Department etc etc. Most departments don’t communicate with each other, few of the departments ever get any real training and 80% of the oganization is just clerks, regardless of the titles. Non have any real authority and few read or know where to find their own regulations they are suppose to enforce.

]]> By: Richard Ketchum Keynote from the Compliance Week Conference | Compliance Building http://www.compliancebuilding.com/2009/03/10/finra-announces-creation-of-office-of-the-whistleblower/comment-page-1/#comment-990 Richard Ketchum Keynote from the Compliance Week Conference | Compliance Building Wed, 03 Jun 2009 18:52:36 +0000 http://www.compliancebuilding.com/?p=1728#comment-990 [...] is re-evaluating their internal processes to see what they could do better. He pointed out the new FINRA Whistleblower hotline. FINRA is looking at ways to make sure things do not fall through the [...] [...] is re-evaluating their internal processes to see what they could do better. He pointed out the new FINRA Whistleblower hotline. FINRA is looking at ways to make sure things do not fall through the [...]

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