On May 29, 2014, SEC Commissioner Kara M. Stein delivered remarks before FINRA’s Division of Market Regulation in which she discussed the SEC-FINRA partnership, the limitations of the organizations’ existing rules, and enforcement issues, as well as addressing the question, “Are the markets rigged?”<\/p>\n
Commissioner Stein discussed a number of the challenges faced by the SEC in its enforcement effort, citing as a major issue the fact that most violations require proof of intent. Commissioner Stein suggested that the SEC and FINRA reexamine existing rules to ensure that regulators haven’t “made it simply too difficult to prosecute bad conduct.”<\/p>\n
In order to protect the markets from being regarded as a rigged game, Commissioner Stein offered the following recommendations:<\/p>\n
\nLofchie<\/span> Comment<\/span><\/span>:<\/span> Commissioner Stein raises important policy issues that provoke important questions. Is there an over-emphasis on enforcement rather than cooperation in the regulatory process, particularly with regard to technology failures where there is no ill-intent? An adversarial approach to technology failures may simply discourage participants from sharing best practices for the good of the market.<\/span><\/p>\n<\/blockquote>\n
See<\/span>:<\/span> Text of Commissioner Stein’s Speech<\/a>.<\/span><\/p>\n
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On May 29, 2014, SEC Commissioner Kara M. Stein delivered remarks before FINRA’s Division of Market Regulation in which she discussed the SEC-FINRA partnership, the limitations of the organizations’ existing rules, and enforcement issues, as well as addressing the question, … Continue reading