FINRA and the Securities Power Grab
April 21, 2010 by Sheryl J. Moore
Ever feel like some groups just don’t have enough job security? Take the Securities and Exchange Commission (SEC) for example. Historically, the SEC has attempted to take-over regulation of several non-securities products. Want proof? Google “SEC wants to regulate banks” or “SEC wants to regulate single premium life.” Or how about, “SEC wants to regulate INDEXED ANNUITIES?”
Well, the Financial Industry Regulatory Authority (FINRA), formerly known as the National Association of Securities Dealers (NASD) has been in need of job security over the past few years as well. They made a power grab by demanding that member firms treat indexed annuities as securities with their Notice to Members 05-50 in August of 2005. Now, they are trying to make another regulatory power grab. Read here for more details.
Why are we surprised? Shouldn’t Congress be re-evaluating the effectiveness of these administrative agencies? It is about time! sjm