July 22, 2018
Dear SEC:
I have been an active member of the State Bar of California since December of 1957. And I have also served as an Arbitrator of disputes for FINRA DR (and its predecessors, NASD, NYSE, PSE, etc) for more than 30 years.
As you doubtless know, under California substantive law, brokers and brokerage firms ARE considered to be "fiduciaries" with respect to their conduct vis-a-vis their customers/investors. See the case of Duffy vs. Cavalier 215 Cal. App. 3d (1989). I hope that all 50 states will soon have this same "law" in their states -- though many of them don't as yet.
So I am a very strong supporter of the SEC's extensive proposals to amend its regulations to afford greater protection to public customers and investors. I especially support your efforts to (a) discontinue the common practice of sponsoring "contests" to promote certain investments and to (b) fully disclose to public customers and investors all the 'costs' of their investments and all the 'compensation' (commissions, mark-ups, mark-downs, order flow payments, commissions and payments to brokers and brokerage firms, both one-time and 'on-going' on sales of annuities, other insurance products, derivatives, etc.) that their investments provide to the brokerage firms and the individual brokers.
My experience and background include service as the Vice President and General Counsel for two different NYSE-listed companies, each of which were Fortune 500 industrial companies at the times of my employment with them. I have also been an active member of the Panel of Neutral arbitrators for the American Arbitration Association for almost 50 years, hearing wide variety of commercial disputes.
Thank you very much for all your ongoing efforts to reasonably inform and protect the investing public.
Very truly yours,
Alan Stamm