July 15, 2015
Comments Attached.
In anticipation of tomorrow's meeting, I would like to commend the SEC and FINRA Staffs on the National Senior Investor Initiative , A Coordinated Series of Examinations , The SEC's Office of Compliance Inspection and Examinations and FINRA Report. It is an excellent and comprehensive analysis. I am an experienced regulatory lawyer and former SEC staffer. I have represented senior citizens in securities arbitrations and defended brokers and promoters in cases involving seniors in SEC, State, and FINRA administrative proceedings as well criminal and civil litigation.
The National Senior Investor Initiative Report addresses a number of issues relating to senior abuse but does not focus upon the fact that in this context the broker-customer relationship often starts in or is morphed into a social relationship that hides financial misconduct by the broker. In one case that I was involved in as an attorney the broker was able to borrow significant funds from his elderly customer to satisfy his home mortgage obligations. It is my recommendation that when there are family and strong friendship ties that there be a heightened level of compliance and supervisory consciousness and pro-activity in respect to the customers' and their account activity.
I am also attaching three (3) articles on financial regulatory reform that express my viewpoint that we should not be focused on a Uniform Fiduciary Standard for Brokers and Advisers but in better defining the professional standards of advisers and brokers in respect to the different roles in which they serve. Thank you for allowing me to express my views on these important public interest issues. Norman B. Arnoff.
Copyrighted material redacted. Author cites:
Arnoff, Norman B. "Our Capital Market's New Frontier: Professionalism." Journal of Compensation and Benefits (May/June 2014): 42-56. Web. 16 July 2015.
Arnoff, Norman B., and Paul A. Immerman. "Dodd-Frank’s Title IX, Investor Protection, Professionalism and Reform." Securities Litigation Commentator 2013.6 (2014): 41-48. Web. 16 July 2015.