October 18, 2011
David A. Geracioti
Editor-in-Chief
Registered Rep. Magazine
Dear Mr. Geracioti
The assertion made in the Oct. 6 Op-Ed by Andrew Haigney that FINRA is an ineffective regulator is
unfounded. We recognize it’s more important than ever for regulators to be nimble, and in recent years
have made important changes to enhance our examination and enforcement programs to better
identify and respond quickly to fraud. FINRA is the primary driver of moving people who engage in
misconduct out of the securities industry as quickly as possible to prevent customer harm.
Since 2001, FINRA has brought 12,655 disciplinary actions, expelled 187 firms, barred 4,003 individuals
and suspended 3,541 more from the securities industry. In 2011 (Jan — Sept), FINRA has brought 1,067
disciplinary actions, expelled 13 firms, barred 236 individuals and suspended 315 more from the
securities industry.
Mr. Haigney’s op-ed needs to be seen for what it is — the opinion of a registered IA who likes the current
system where an investment adviser firm can go 10 years without being examined. That kind of
oversight is simply unacceptable in a regulatory environment committed to putting investors first.
Sincerely,
Howard M. Schloss
Exec VP, Corporate Communications
FIN RA
Investor