Karen Fischer, a Boca Raton, Fla.-based compliance consultant, yesterday began circulating petitions to small broker-dealers in order to get on the ballot for a seat on the National Adjudicatory Council.
The Financial Industry Regulatory Authority Inc.'s nominee for a small-firm seat on its appeals board could face a challenge.
Karen Fischer, a Boca Raton, Fla.-based compliance consultant, yesterday began circulating petitions to small broker-dealers in order to get on the ballot for a seat on the National Adjudicatory Council.
If she gets the support from 125 small firms, Ms. Fischer will challenge David Sobel, the general counsel at Abel/Noser Corp., who was nominated by Finra's nominating committee this month for the spot.
The small-firm NAC seat is currently held by Alan Davidson, founder of Zeus Securities Inc., whose term is up at the end of this year.
New NAC members will serve three-year terms beginning in January 2012.
“There are too many attorneys on the NAC,” Ms. Fischer said.
“There are not enough people with hands-on experience,” she said. “We need people who work in compliance on a daily basis.”
Ms. Fischer said she hopes to get support from those who supported Mr. Davidson as a petition candidate for the NAC in 2009.
Mr. Davidson this month lost out for a small-firm seat on the Finra board, finishing second in a three-way race.
“Most of the penalties for minor infractions are just too large for small firms,” Mr. Sobel said.
“You can't just go by some chart [in deciding] the penalty for a violation,” he said. “You really have to look at the facts and circumstances.”
The NAC comprises seven industry members and seven non-industry members, including two representatives from small firms, two from large firms and one from a midsize firm.
The panel reviews disciplinary decisions issued by Finra hearing panels and hears appeals.
