The Blog Of The Securities Industry Professional Association

NYSE Candidate Draws Opponents Fire

October 1, 2009

Dear Fellow Small Firm Members of FINRA,

I regret technical problems sending you multiple messages.  I believe the
problem is resolved.  Please accept my apology for any inconvenience.

You have now received your FINRA National Adjudicatory Council Ballot. If
not, please contact Megan Peluso at 202-728-6936.  She will arrange for a
replacement ballot to be sent to you.  The following is worthy of your note:

1.        My opponent, the FINRA Nominating Committee choice sent you a letter
urging your support on firm letterhead declaring his NYSE Membership to the
World.  No comment of any FINRA Membership was made.  Is this who he intends
to represent?  NYSE firms?  The FINRA selection fails to understand this is
a small firm NAC election.  Perhaps he should be seeking a position with the
NYSE where his interest obviously rests.

2.        He further states he “.was asked to place my (his) name in
nomination.” to fill the “.small firm vacancy on the National Adjudication
Council.”  Who “asked” him to “place” his name in nomination other than the
Nominating Committee?  Again, this nomination process took place behind
closed doors to the exclusion of the FINRA Membership.

3.        He then declares “he is not comfortable with the political aspect of
this process.”  His actions have amply demonstrated he opposes an open
nomination process, contested elections and full disclosure of one’s agenda
prior to election.  He clearly has the support of a few on the Nominating
Committee.  I have the support of 170 of our colleagues who honored me by
taking the time to provide their petitions placing me on the ballot.  My
personal agenda is your agenda.

As this is being written, the House Financial Services Committee is meeting
in Washington, DC to discuss future Regulation and capital formation.  I can
think of no more important issues confronting us than for the 4,400 small
FINRA firms to be heard.  NAC Members interact with Regulators.  Others and
I have previously made several attempts to provide input to the Regulatory
hearings before Rep. Barney Frank in Washington, DC.  Kindly note the latest
enclosed communication, below, to which I, personally, wholly subscribe as
your NAC candidate.  If you share that view, please sign and date the return
coupon to me.

There are many issues which will determine the Small Firms’ ability to
survive in the near and long term.  Please review Regulatory Notice 09-56;
Proposed Changes to the Personnel Assessment and Gross Income Assessment
Fees.  This could not have come at a more inopportune time to further stress
our survival.  Firm revenues are down, Registered Rep income is suffering.
Why is FINRA increasing fees?

Here are more issues that are about to cut big holes in our pockets:

.      PCAOB (Public Company Accounting Oversight Board) Annual Audits

.      Net Capital Increases

.      SIPC Fee Increases

.       “Routine” examinations, petty infractions and fines

I am well aware that the mission of the NAC has another focus.  However, my
access to various levels of FINRA Management will enable me to voice the
concerns of the Small Firm owner/operators.

Too many Small Firms have been and are being driven out of the business for
us to ignore the issues any further.  I need your vote.  I need for you to
empower me with the opportunity to voice the issues and concerns that affect
all Small Firm owner/operators.

Thank you for honoring me by placing me on the ballot.  Now I need your
undivided support to prevail.  NOW, I NEED YOUR VOTE TO CARRY THE ISSUES AND

Thank you,


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October 1st, 2009



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