Subject: File No. SR-FINRA-2012-026
From: Virgil F Liptak, CFP retired
Affiliation: retired Registered Principal and Arbitrator for the former NASD

July 3, 2012

It is axiomatic that the subject Rule 6140(h) which has been codified since 1975 should not need to be re-confirmed when in fact, the regulators admit that they have failed to enforce it on some illegal premise that consumers would knowingly agree to do otherwise. It is elemental to any lawyer and any sound mind that a contract must have both a legal purpose and consideration. Contracts of adhesion, ala broker agreements that consumers cannot understand, can never trump codified laws regardless of whether or not the cop on the beat is enforcing them. To do otherwise is akin to suggesting that speeding in a school zone while 'texting' your spouse is fine, as long as the school children do not first sue the police to require them to enforce the existing laws. Free enterprise has limits. Please enforce them so that we do not continue to see multi-billion dollar fines of drug companies and banksters, who openly fix LIBOR and manipulate markets with "concerted actions". Not long ago, that was considered crime per se.
Since President Obama promised hope we could believe in, I hope that you will do your jobs and enforce since, left to themselves, it is axiomatic human nature that conflicts of interest must be prohibited, not simply disclosed along with a million nonsensical words in contracts that nobody ever reads or understands. At bottom, the proof is in the existing law and seeing is believing.