June 8, 2015
Without adressing FINRA's interjection in to arbitrations between Investment advisor clients and Investment Advisors, this SEC effort is misdirected.
Having sat through SEC Commissioners speeches, it is not much of a reach to state that Career SEC commissioners are out of touch with IA realities and Investor experience. Moreso, Investors are deceived in to believing the SEC is effective. How many Investment Clients know that the SEC commissioners vote on what cases to move forward on? How many Investment Clients know how stressed the Securities Commissioners are due to exploding online financial crime and diminishing resources and personnel.
Not many. Investment clients should know.
There is no value to any comments being sought by this SEC soliciation unless the SEC does a historical investigation in the how many Investment Advisor clients have been wrongfully walked in to FINRA arbitrations under the impression that FINRA had oversight over IA clients. FINRA does not.
Before initiating any new practices, the SEC must conduct a retrospective study by contacting each and every Investment Advisor client that has been unsuspectingly walked in to a FINRA DRS arbitration, review the FINRA digital record of the hearing, then the questions that need to be asked will be seen.
Unfortunately, the SEC is complicit in injuring investors.
By accepting data from FINRA, in a zero dollar exchange, the SEC is compromised as an investor protector, by it, the SEC accepting FINRA's tainted data. U4s have been found to contain incomplete and erroneous data. U4's have been found to be missing lawsuits the IA is involved in, both as Plaintiff and as Respondent.
FINRA expunges complaints against FINRA members without having crimes reported to law enforcement. A problem investment clients run in to is not knowing who their investment advisor is.
FINRA sneaks Investment Advisors in to arbitrations letting Investment advisors allege they are brokers. FINRA allows complaints to be expunged without following the rule of the arbitration panel of receiving consent of the Investment Advisor client.
IA's have been represented in FINRA arbitration by lawyers not licensed in the jurisdiction of the arbitration forum. A panel chair whose resume that FINRA sent out stated he is "of counsel" when in fact the local bar stated his license is inactive. Arbitrations are conducted by panelists who do not read the submitted documents. FINRA must require lawyers arguing for clients to produce their bar cards. Without a local jurisdiction bar card, the lawyers are practicing Law without a license.
Before moving forward the SEC must go back and do diligence into the failed practices that injure Investors to learn how many investment advisor clients were not told to take their claims to court, had their Social Security numbers stolen, assets stolen, account papers faked from employees at branch offices across the country or had their IA set up unauthorized faked accounts at other firms. Or had the attorney submit unrelated matters in to proceedings.
It's complicated, for one reason. To confuse investors from learning the last place their assets should go to is the Investment Advisor since no one is properly watching this henhouse.
FINRA digital audio's do reveal the negative attitude of FINRA arbitrators to the Investor. The SEC must make the arbitrators accountable for participating in Frauds. FINRA is not a government agency hence FINRA arbitrators are not protected as they assert they are.
Sincerely
Carrie Devorah
562 688 2883
www.centerforcopyrightintegrity.com