Inside the Litigation Lion

Death of the Small Broker-Dealer

“After all the highways, and the trains, and the appointments, and the years, you end up worth more dead than alive.”  ~ Willy Loman, in Arthur Miller’s Death of a Salesman

by Richard A. Roth and Craig B. Tepper Over the past decade, a tremendous amount of pressure has been laid on the shoulders of the small broker-dealers of the securities industry. Like the iconic Willy Loman in Arthur Miller’s Death of a Salesman, these small and/or independent brokerages are allotted a significantly shorter leash than they have been in years past, and because of it, they are rapidly becoming the endangered species of the securities jungle. The statistics are plain ...

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Discuss this Blog Entry 6

on Jun 19, 2013

Suprise, suprise, the FDIC did it to the community banks looks like FINRA got the message.

on Jun 19, 2013

Spin it any way you want. FINRA in order to justify its existance & its compleate inability or desire to find bad guys in industry decided to destroy small Broker/Dealers. The big guys can fight back. When Mary Shapiro became head of SEC after commiting fraud in NASD merger, FINRA had no oversight.

on Jun 19, 2013

BULLY"S. I've seen it first hand, not only on the federal level but the state level too. When the revenue is only generated when you catch someone doing something wrong then everyone is doing something wrong...That is not OK. When you tell a regulator that you don't understand how to apply this rule and they so "that easy, let me help" then they fine you because you weren't crossing the "T" just right....yeah...Low hanging fruit.

on Jun 19, 2013

As this "consolidation" continues, the industry is losing it's ability to raise "risk" capital. This has long term implications for innovation and growth beyond the financial services industry.
And yes, it appears regulation is (as a friend of mine refers to it) eating thier young.

on Aug 19, 2013

Interesting article. Another factor that may impact this trend is Finra's proposed rule that would require brokers to disclose to clients the details of any "enhanced compensation" packages offered by a recruiting firm. Finra Regulator Notice 13-02. A roadblock to recruiting new talent can be a roadblock to growth, one would think.

on Aug 19, 2013

Interesting article. Another factor that may impact this trend is Finra's proposed rule that would require brokers to disclose to clients the details of any "enhanced compensation" packages offered by a recruiting firm. Finra Regulator Notice 13-02. A roadblock to recruiting new talent can be a roadblock to growth, one would think.

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What's Inside the Litigation Lion?

An inside view of trends in SEC/FINRA regulatory and compliance issues and how it affects individual financial advisors and their firms.

Contributors

Richard Roth

Richard Roth is the founder and president of The Roth Law Firm, PLLC, a boutique litigation firm that concentrates in litigating securities arbitrations and SEC/FINRA enforcement actions. He...
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