FINRA recently extended the compliance date for the FINRA Debt Research Rule until April 22, 2016, and noted that it did so in response to industry questions regarding the implementation of the new rule. FINRA now has updated its Research FAQ to address at least some of the issues that could arise under the new Research Rules. Although the updated FAQ clarifies certain issues, others remain unclear. For example, the updated FAQ provides little additional guidance on what measures…

It is true that many rules have been adopted and that, if Dodd-Frank is implemented fully, even more will be adopted. It is far less clear that the financial system is better or more stable. Many of the new requirements are irrelevant to financial stability (e.g., the requirement that certain swaps be traded on an exchange), while the effect of other rules that are touted by the regulators as promoting financial stability (e.g., the requirement that certain swaps be centrally cleared) seem…

Senator Warren's populist rhetoric obscures how problematic her policy and process recommendations are as a practical matter. Her recommendations represent oversimplified answers to complex market issues and this latest speech demonstrates an increasing tendency toward stifling valuable dissent and demonizing opponents. Here is a breakdown:    

The Public Interest and Its Advocates. What precisely is this thing called…

This paper raises several important public policy issues. One may reasonably conclude from the findings that any violation of the securities laws that involves fraud should result in an individual's permanent suspension from the industry. Alternatively, one may conclude that the penalties for adviser misconduct are in fact quite severe; the fact that 44% of advisers fired for misconduct find a new job within one year also means that 56% do not. This does not seem trivial. Yet…