Stephen Dybwad

Stephen J. Dybwad | Highly Individualized Financial Guidance

FINRA And Its Relentless Attack on Excessive Fees

 

Let’s see…..hmm. The Commissioner of Baseball is also one of the franchise owners

The NFL is a nonprofit organization that pays its commissioner $44 million a year…….hmmThe securities (brokerage) industry to slow federal oversight, declared itself a self-regulating industry.Hmmmmm…..the brokerage industry earns compensation for actions, sales, management, etc.So….NASD (National Association of Security Dealers) was renamed FINRA (Financial Industry Regulatory Authority) to appear to be more regulatory.The SEC (Security and Exchange Commission) has complained for years to FINRA that oversight was too narrow.FINRA announced it would slow down (corral) excessive fees.http://www.finra.org/web/groups/corporate/@corp/@about/@ar/documents/corporate/p534386.pdfHmmmmm…where does FINRA get its financial budget? A: The brokerage industry.How much is their annual budget (2019)? A: $1,050,000,000How much did FINRA overspend (loss) in 2019? A: $68,400,000 (loss)How many people does FINRA employ? A: 3,500 (2019).So….a self-regulating industry, with a budget of $1 billion, overspent regulating an industry (by $68 million) that FINRA has decided is charging too much in fees…..hmm.Let’s summarize:
  • FINRA regulates the brokerage business.
  • FINRA is supported by the brokerage industry.
  • The brokerage industry earns its income from fees.
  • FINRA wants to reduce the fees the brokerage industry charges.

Am I nuts or do I see a problem?

A recent article in Investment News reported the planned crackdown on excessive fees charged by the brokerage industry.Here is the link: http://www.investmentnews.com/article/20150123/FREE/150129955/regulators-bare-their-teeth-on-excessive-fees  
Steve Dybwad picture

Stephen Dybwad

Stephen J. Dybwad | Highly Individualized Financial Guidance

Cincinnati, OH, Louisville, KY, Indianapolis and Madison, IN,

stephen.dybwad@retirevillage.com

(800) 959-3526

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