Regulator under attack from advisor firm

Regulator under attack from advisor firm

Regulator under attack from advisor firm It seems that barely a day goes by without reports about at least one regulator enforcing its rules on a financial company. However, now the tables have been turned.

Scottsdale Capital Advisors have fired back at a regulator with a lawsuit aimed at the Financial Industry Regulatory Authority (Finra). According to a report at Law360, the lawsuit has been filed which suggests that the regulator does not have the authority to enforce securities laws.

However, this is not the first time that Finra has been questioned with other critics suggesting that it has acted almost like a government agency despite not having government oversight. Whereas another regulator in the USA, the SEC, reports to Congress, there is no such obligation for Finra.

According to the web publication, Finra does not have the transparency that is required by government organizations. Indeed while it has a budget of around $1 billion, there is no member input into its practices.