The SIPA

Some where along the way the unions went from protecting workers to intimidating them as well as our Government. I never really understood this phenomenon. GM, Ford and Chrysler have had strong unions for years and years and it afforded workers solidarity and negotiating power. That was until a guy with a high school education started making $80,000 per year to run a bolt through some sheet metal.

The decision by the Trustee is puzzling on so many levels I almost do not know where to begin so In keeping with my theme from my speech last week to Broker Dealers at the Financial Services Exchange meeting in Atlanta: Follow the money!

The economy has been in the toilet since 2007 and although everyone keeps saying “the 2nd half of next year we should see a rebound” the stark truth is that there is no rebound in site and anyone saying differently is either a shill for the government or an absolute moron. The Financial Reform Act which was thrust down the throats of Financial Institutions and taxpayers will be the “Grinch that Stole Christmas”.

We can only do so much here and we think its important to let the candidates know how you feel instead of just beating us up. We are here to help the small firms and brokers out there and unlike other group sout there we believe in accountability and if our guys aren't living up to their word then we will find others that will.

As it turns out maybe Lisa Roth was the only one being truthful or perhaps was the only one who would have the gumption to stand up to the FINRA board. That remains to be seen but the point is that the explanation given by FINRA is the exact SAME explanation that was included with the proxy ballot. As outlined last week, the rationale behind the lack of transparency makes no sense at all

The Securities Industry Professional Association and the Independent Broker-Dealer Association today called the recent FINRA Board nominations “a back room closed door process.” In an unusual joint release, they charged the FINRA Board Nominating Committee with appointing “selected” proxies who will continue the dysfunctional policies of the Board.

As I read the SEC press release on Friday charging Goldman with fraud I couldn’t help but laugh and wonder if they contacted Mario Puzo and asked for advice on how to get the swirling controversy around them to subside. The fraud charges are comical at best due to the fact that one person from Goldman was named in the SEC indictment.

New rankings show that Delaware is a better place to hide money than Switzerland. While this may come as a surprise to most Americans, financial sector analyst Heather Lowe says that it is not a surprise to the world’s criminals. Question: Would that be in, uh, Dollars? Spin, spin spin… Watch Video…

he question is: are they worth it? I think we have to define what worth it means. Is it a monetary value? A sales opportunity? An educational value? A networking value? Is it a golf outing or a couple of days away from the office, spouse and kids? The answer is that it is probably, to some extent, all of those things. Obviously the further away from your home the conference is the less of a monetary value it is. But most conferences that have two a year alternate between the east coast and the west coast. How much can you learn if you go to more than one a year? The answer to that depends on how many years you have been in the business. But even the most experienced or jaded of our flock can pick up one nugget of information that might help them through the next exam, make their jobs a little easier or help them with the corporate powers that be. Is that worth it? I personally believe it is.

How To Evaluate A Potential Recruiter By Chris Herbst; www.JupiterConsultantsLLC.com In these tough times, Advisors are increasingly turning toward professional help in job seeking. In this market, some are just happy to locate a firm that doesn’t have a hiring freeze. But there is light at the end of the tunnel, as firms seem to [...]

Please contact us when your ready and we will point you to a PCAOB Accountant that is in your area and price range. Eventually we will be posting as a resource to all readers of BDexchange’s Newsletter and The SIPA will be posting the contact info on its site shortly. If you are one of the lucky firms that has a PCAOB Accountant that has not taken advantage of the new requirement then let us know and we would be happy to add him or her to our growing list.

Effective January 1, 2010, FINRA is increasing the regulatory fees that are paid by all broker dealers. The Personnel Assessment (“PA”) is doubling. In their August 20th rule filing, FINRA explains that due to increased enforcement, rulemaking and examinations costs, they must “stabilize its revenues and provide protection against future industry downturns.” I guess losing all that money in the market took its toll on their budget, but that’s a different article.

States are desperate for revenues. Now some are mulling the possibility of going after sales taxes for business conducted for clients within those states, adding yet another layer of fiscal burden for Broker Dealers and individual advisors registered in those states. David Sobel covers this developing story. The current budget crisis has hit many states [...]

In the wake of Madoff and other frauds, the SEC warned on March 9 that “the staff has determined that, in order to perform a valid verification of Assets, the staff must request independent confirmation of investor assets from various third parties” including your clients themselves. We can only imagine just how reassuring a call [...]

Today the Treasury Secretary began outlining his vision of a new Regulatory structure to replace the old one. This new system will save us all from another catastrophic meltdown in our financial system and make sure corruption and greed is caught early on. The SIPA response? Yadee Yadee Yadee… With all due respect, why create [...]

The SIPA wishes a heartfelt congratulations to Mr. Alan Davidson of Zeus Securities, upon his election to represent the interest of small firms in the National Adjudicatory Council (NAC). The NAC reviews FINRA disciplinary decisions. The election is of special significance because it was contested and Mr. Davidson ran as an independent candidate.  Despite the [...]

CYA In These Crazy Times As one of the leading voices of Registered Reps and their rights to Life, Liberty and the pursuit of higher returns, The SIPA has had an out pouring of e-mails and phone calls from Individual registered Representatives who are now being made the brunt of this cruel Bail-out Blarney.  As [...]

 HOW FINRA PROVES ONCE AGAIN TRANSPARENCY IS A FARSE! The Sipa and its Board have been approached by various prospective candidates for the National Adjudicatory Council ( NAC) position that is available for a small firm member.  In December, FINRA decided to ‘nominate’ a qualified small firm candidate named James S. Jones of Crews & [...]

One of my favorite quotes of all time is Sherriff Brodie in Jaws backing up slowly from the eyes of a monster with a cigarette butt dangling loosely from his mouth and whispering “ WE’RE GONNA NEED A BIGGER BOAT” Can any one line better sum up 2008 on Wall Street? Wall Street and our [...]

What’s that smell in this room? Didn’t you notice it, Brick? Didn’t you notice the powerful and obnoxious odor of mendacity in this room?  - Big Daddy, in Cat On A Hot Tin Roof by Tennessee Williams In the rush to judgement and assign culpability (which is good and necessary)  a new poster boy for [...]

  Many members have remarked upon Ms. Shapiro’s tremendous capabilities as an administrator and leader, as well as her overall likeability factor. Others, however, have been critical of the tone and focus of her administration, as well as her handling of the events which arguably lead to the Financial Crisis. But whether because of or in spite [...]

How To Insult The American Public With A Smile On Your Face Today the SEC Chairman Christopher proclaimed that “ The SEC Failed to Investigate and Probe Madoff”.  (Click here to read story). While this might sound to some of you as a small act of contrition and public acknowledgement of his agency’s failings, this [...]

Why Madoff will not be an isolated case Over a year ago we questioned whether there was sufficient regulation of the Hedge Fund industry (click here to read).  In light of the Madoff Meltdown the important question brokers must be asking themselves now is not IF more regulation is necessary, but should one remove one’s clients’ [...]

Bernard Madoff. The ultimate zinger. Just say the words: Bernard Madoff -the whole room goes deathly silent. What can one say? What the hell was he thinking? At a moment when the entire world is looking for a reason to trust the US financial system, in rides Bernie Madoff. Former Chairman of the Nasdaq. Treasurer [...]

“Gold, Schmold – Who cares, you can’t take it with you.” It’s no secret that the layoffs have begun in earnest at broker dealers, advisories, hedge funds, etc. With over 1,000,000 jibs lost in the US this year, wall street has been hit with a disproportionate number of layoffs – some 100,000 announced in the [...]

While Minimizing Risk To Your Client, Your Firm and Yourself It’s no secret that investment commitments in private equity have gone ballistic over the last few years. And rather than crashing and burning, as many expected was just about to happen, and despite a lackluster market, commitments continue to hit all-time record levels. Advisors are becoming [...]

Ensure That Your Settlement With A State Regulator Does Not Result In Inadvertent Statutory Disqualification By Alan Wolper My son, like most teenage boys, spends his fair share of time (tread that “every waking minute”) devoting himself to achieving higher and higher skill levels in the video games he received for Christmas that make Pac-Man [...]

In the financial industry and with today’s competitive world, it is hard enough to make a living. Today with a strict regulatory environment it’s even harder to keep focused on what we do best. We help our clients create and maintain wealth. A lot of firms can’t afford to have the proper Compliance personal and [...]

By Karen Fischer In the current regulatory environment your financial record keeping is now a full time job. 10 years ago all that was really required to be a firm’s FINOP was some accounting experience and a series 27.  But that was then, and this is now. The events of 9-11 and the resulting AML [...]