Finra seeks to delay nontraded REIT pricing rule

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Brokerdealer.com blog post courtesy of extract from industry publication InvestmentNews.com

investmentnewFinra is asking the Securities and Exchange Commission to give the independent broker-dealer industry much longer than it originally sought to implement rule changes that would give investors a clearer picture of what it costs to buy shares of a nontraded real estate investment trust or private placement.

The Financial Industry Regulatory Authority Inc. filed the changes and also sent a letter to the SEC on Friday that contained its final proposed rule changes to rule 2340, or rules affecting customer account statements.

In the letter, Finra associate general counsel Matthew Vitek asked the SEC to give broker-dealers and nontraded REIT sponsors 18 months to adjust to the new guidelines. Finra earlier this year had proposed giving the industry just six months after the SEC approves the rule to make those changes.

For the full story from InvestmentNews.com, please click here.

Finra Fixing To Levy More Fines Against BrokerDealers

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BrokerDealer.com blog post courtesy of extracts from the Wall St. Journal

The Financial Industry Regulatory Authority aka Finra, the Wall Street watchdog charged with policing the brokerdealer community and overseen by the Securities and Exchange Commission (SEC), is considering tougher penalties for misconduct after criticism from an SEC official that its sanctions are too lenient.

finra penalties wsjIn the five years since the financial crisis, Finra, which is funded by the industry, didn’t discipline any Wall Street executives. It imposed fines of $1 million or more 55 times through 2013, compared with 259 times for the SEC, according to a Wall Street Journal analysis. The SEC oversees a wider number of firms and range of conduct.

Susan Axelrod, Finra’s executive vice president of regulatory operations, said in an interview the watchdog would review its guidelines to make sure penalties are “meaningful and will have an impact.”

She rejected any suggestion its punishments have been insufficient, adding that Finra, as “the cop on the beat from Wall Street to Main Street,” should not be judged just on its biggest fines. “We’re going to bring the action against the individual broker in Des Moines, Iowa, that other regulators are not going to bring. That’s a key part of our mission.”