Finra accused of age bias

A former district director of Finra's New York office has filed an age discrimination suit against the regulator, Reuters reported last week. Hans Reich, 66, alleges that he was terminated from the Financial Industry Regulatory Authority Inc. at the end of March and replaced with a younger acting director, Reuters reported. Finra may be cleaning house in the wake of industry scandals, said attorney Bill Singer, a partner at Gusrae Kaplan Bruno & Nusbaum PLLC, who worked for Mr. Reich in the 1980s at Smith Barney Harris Upham, where Mr. Reich was director of compliance. “They're getting tremendous heat after the failures with [Bernard] Madoff” and others, said Mr. Singer, who said that he hasn't spoken to Mr. Reich about the suit. Mr. Reich's departure is a “horrible thing,” said Alan Davidson, founder of Zeus Securities Inc., who served with Mr. Reich on Finra's New York district committee from 1989 to 1992. “He was a top talent [and] a voice of reason.” Finra “obviously prefers these younger guys ... who are not as sensitive or responsive” to member firms, Mr. Davidson said. The claim was filed in the U.S. District Court for the Eastern District of New York, according to Reuters. A copy of the lawsuit wasn't available. Finra spokeswoman Michelle Ong declined to comment. Email Dan Jamieson at djamieson@investmentnews.com