FINRA Investor Survey Reveals Strong Support for Investor Protections
On behalf of Mihalek Law posted in Securities Law on Friday, December 5, 2014.
The Financial Industry Regulatory Authority (FINRA) – the largest regulator for all securities firms doing business in the United States – recently released a survey of U.S. investors designed to measure perceptions of fairness and to gauge demand for additional regulatory protections. FINRA’s survey of 1,000 adults revealed that 92 percent of investors agreed (62 percent strongly agreed and 30 percent somewhat agreed) that it is important to have a regulatory “cop on the beat” to protect investors and police the markets.
Overall, investors surveyed by FINRA strongly agreed that regulation and investor protections are important. Highlights include:
•· 88 percent of investors believe it’s moderately or very important for regulators to detect when unsuitable securities are being sold to investors.
•· 90 percent believe it’s moderately or very important for regulators to detect when brokers are making trades that benefit themselves and not the investor.
•· 89 percent believe it’s moderately or very important for regulators to detect when firms are taking risks that potentially harm their investors and the financial system.
Nearly three quarters of investors surveyed (74 percent) would support additional regulatory protections to safeguard them from misconduct by brokers or brokerage firms.