Sense on Cents

Regular readers of Sense on Cents are well aware of the multiple issues I have highlighted regarding Wall Street’s self-regulatory organization, FINRA. Allegations of front-running the auction-rate securities market, allegations of investing its own funds in Madoff, misrepresentations (i.e. lying in a proxy statement) in the document used for the very formation of the FINRA organization, and ultimately an incestuous relationship with the industry, I have not been bashful in highlighting what I deem to be critical failings, if not potentially much worse, within this organization.

A good friend of Sense on Cents, Ronnie Sue Ambrosino (who just so happens to be a lead spokesperson for Madoff investors), shared a very interesting commentary regarding FINRA. The writer, Ron Rhoades, offered his thoughts on FINRA yesterday at RIABiz, a website which promotes itself as providing “voice, news, and vision for the advisory (registered investment advisors) community.”

Ron holds nothing back in addressing the question of the fiduciary standard within investment management. (more…)