By: Jack WaymirecloseAuthor: Jack Waymire Name: Jack Waymire
Email: jack@paladinregistry.com
Site: http://paladinregistry.com
About: Jack writes for the InvestorWatchdog website and Worth magazine. He worked in the financial services industry from 1976 to 2004. For twenty of those years he was the president of a Registered Investment Advisory firm and a Broker/Dealer. Jack is the author of Who's Watching Your Money? The 17 Paladin Principles for Selecting a Financial Advisor and is a co-founder of PaladinRegistry.com.See Authors Posts (87) | September 14, 2009 | The Politicians, The Regulators

Let’s face it, people who work for financial services companies are a lot smarter than people who work for the two primary industry regulators (SEC and FINRA).

But it doesn’t stop there. The SEC is controlled by politicians and the politicians cater to Wall Street special interests. The financial services industry spends $300 million per year on lobbyists to make sure the regulatory environment favors companies and not investors.

FINRA is a Self-Regulatory Organization that is controlled by the big Wall Street firms. To say it has a conflict of interest is a gross understatement. But, Wall Street likes it this way. It makes investors feel more secure because they believe financial service companies are regulated by experts who know how to detect fraudulent activity and deceptive sales practices.

That certainly wasn’t true in the case of Madoff Securities. I don’t believe regulatory oversight will improve until it is truly independent. That means the agency (we don’t need two) is not controlled by politicians or financial services companies.

Make no mistake, Bernie Madoff flourished for decades because Wall Street wants lax, weak regulatory agencies so companies can maximize profits.

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