SEC News
- SEC Charges Dallas-Based Trader With Front Running May 24, 2013FOR IMMEDIATE RELEASE2013-93 Washington, D.C., May 24, 2013 — The Securities and Exchange Commission today announced fraud charges and an asset freeze against a trader at a Dallas-based investment advisory firm who improperly profited by placing his own trades before executing large block trades for firm clients that had strong potential to increase the stoc […]
- SEC Charges Institutional Shareholder Services in Breach of Clients' Confidential Proxy Voting Information May 23, 2013FOR IMMEDIATE RELEASE2013-92 Washington, D.C., May 23, 2013 — The Securities and Exchange Commission today charged a Rockville, Md.-based proxy adviser for failing to safeguard the confidential proxy voting information of clients participating in a number of significant proxy contests. Additional Materials SEC Order An SEC investigation found that an employe […]
- SEC Charges City of South Miami with Defrauding Investors About Tax-Exempt Status of Municipal Bonds May 22, 2013FOR IMMEDIATE RELEASE2013-91 Washington, D.C., May 22, 2013 — The Securities and Exchange Commission today charged the City of South Miami, Fla., with defrauding bond investors about the tax-exempt financing eligibility of a mixed-use retail and parking structure being built in its downtown commercial district. Additional Materials SEC Order An SEC investiga […]
- SEC Charges Chicago-Area Father and Son Conducted Cherry-Picking Scheme at Investment Firm May 16, 2013FOR IMMEDIATE RELEASE2013-90 Washington, D.C., May 16, 2013 — The Securities and Exchange Commission today charged a father and son and their Chicago-area investment advisory firm with defrauding clients through a cherry-picking scheme that garnered them nearly $2 million in illicit profits, which they spent on luxury homes, vehicles, and vacations. Addition […]
- SEC Names Keith F. Higgins as Director of Division of Corporation Finance May 15, 2013FOR IMMEDIATE RELEASE2013-89 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today named Keith F. Higgins as the new director of the agency’s Division of Corporation Finance. Mr. Higgins comes to the SEC from the law firm of Ropes & Gray LLP where he is a partner in its Boston office with 30 years of experience advising public com […]
TAG | finra member regulation
In a March 11, 2011, article for the InvestmentNews, Dan Jamieson writes that the SEC needs to beef up its oversight of Finra, according to an analysis of the former’s internal operations released yesterday.
The article said that the Boston Consulting Group Inc. completed the six-month review, which was required under the Dodd-Frank law, this month.
The Securities and Exchange Commission ‘s (SEC) relationship with self-regulatory organizations was just one aspect studied. Because the Financial Industry Regulatory Authority Inc. now provides market surveillance services for approximately 80% of U.S. equity trading, the SEC’s oversight of Finra is particularly important, the report stated.
Focusing on Finra’s market regulation function, BCG said the SEC should pay more attention to Finra’s member regulation and enforcement units by assigning dedicated inspectors to oversee these departments and work with other SEC staff members who handle Finra rule filings and conduct exams of the SRO.
The InvestmentNews article goes on to say that the SEC’s Office of Compliance Inspections and Examinations has the equivalent of about 50 full-time employees dedicated to inspecting 12 SROs. But the SEC has limited information about these private regulators. SROS “are not currently required to regularly disclose information to the SEC regarding their regulatory operations,” the report said.
The study recommended that the disclosure of data by SROs to the SEC be formalized.
The SEC’s Division of Trading and Markets has more than 100 staff attorneys reviewing SRO rule filings, the report said. But that unit’s staff “could benefit from a deeper understanding of how the markets and market participants operate,” the consulting group found.
According to the article, the number of SRO rule proposals jumped 40% from 2005 to 2010, straining the SEC’s ability to review the filings.
The analysis “confirms the concerns I have been expressing — that the SEC does not have the resources to perform all the activities expected of us,” SEC Chairman Mary Schapiro said in a statement. She said the SEC will be forming a series of working groups to address each of the report’s recommendations.
Call a Securities Arbitration Lawyer for a free consultation on how to recover your losses. To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
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