March 3, 2016-Washington, DC
The Investment News reported that Massachusetts Senator Elizabeth Warren raised doubts during a Senate banking subcommittee hearing about whether FINRA can adequately police itself. Wa
During the hearing she questioned FINRA chairman and CEO Richard Ketchum on what the regulators are doing to ensure the protection of investors, citing a recent study by business school professors from the University of Chicago and University of Minnesota asserting that one in 13 brokers has some type of misconduct reported on their FINRA record. That same study shows that half of the brokers with ethical issues are fired, but 44% are rehired by another firm within a year.
While Ketchum said recidivism is being addressed, Senator Warren was not satisfied and insists that the industry must do better.
The study lists the 10 firms with the highest rate of misconduct:
FIRM Misconduct Brokers
|1||Oppenheimer & Co.||19.60%||2,275|
|2||First Allied Securities||17.72%||1,112|
|3||Wells Fargo Advisors||15.30%||1,797|
|4||UBS Financial Services||15.14%||12,175|
|7||National Planning Corp.||14.03%||1,760|
|8||Raymond James Financial Inc.||13.74%||5,495|
|9||Stifel Nicolaus & Co.||13.27%||4,008|
|10||Janney Montgomery Scott||13.27%||1,394|
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