Hedge Funds will be regulated by FINRA within a year...so all these guys who have 5-10 million sitting in an account being traded by unlicensed traderr...they will have to either a) align with a FINRA firm or b) become registered
LOL.... i was thinking the same exact thing. they caused all the problems and now they are going to protect us by strangling the industry more. LMAO
Has nothng to do with that....You think that GS and Merrill and the other players on wall st like the idea that so much money is flowing outside their hands??? FINRA is a tool the largest companies on the street use to either restrict or eliminate competition
. "There are laws in this country that if you want to handle/invest the public's money you have to tell the SEC you exist and open your books for random inspection to make sure you are not a ponzi or some other scheme." not true. under your definition every hedge fund would be subject to sec inspection. tuco was acting like a broker because it was charging its members commissions. only broker dealers are allowed to charge commissions. the sec concluded they were acting as an unregistered broker dealer. tuco also performed other actions which made them look like they were broker dealers which would subject them to registration.
The SEC is not the one doing the audits, it is the regulatory department of the exchange the firm is registered with. The firm as well as their clearing firm has to report any capital deficiencies daily, the firm must file their books with the exchange auditors monthly, each year they are required to have an independant auditor audit the firm's books and file their findings with the exchange, and the exchange regulators do two audits of the firm each year, one announced and one unannounced. The SEC only gets involved when the exchange finds a problem. An unregistered firm has no audits, no audited financials, no regulatory oversight, no capital requirements, no one knowing where all the money is except the guys at the top of the firm. How is this as secure as a registered firm? It's not, plain and simple. And for all the protection I pay $500 a year to the exchange for a membership. To me that's a great freakin deal. They have to let all these guys open a business, they all became criminals after they were up and running and got greedy. But the reason we know about them is they got caught, if they were unregistered they would have done the same things or worse but would probably be on a beach instead of prison. Don't see how this supports your argument that unregistered and unregulated is better.
Thats what I said...No rule on Wall st. gets passed without their approval..and they often get finra to pass rules to eliminate small frims..