Self-Regulation of the Securities Markets: Help or Hindrance?

Although unprecedented fines and sanctions have been levied against financial market self-regulatory organizations (SROs) in recent years, SROs still have an important role to play in financial markets. That’s according to a recent article in CFA Institute Magazine that examines what contributes to a successful self-regulatory system and the characteristics that reinforce the credibility of the system.

“Sometimes SROs can respond to an issue more quickly than the SEC because they don’t have the Administrative Procedure Act and a number of other laws to constrain them from acting quickly,” says Mary Schapiro, former SEC chair and CEO of FINRA, who was interviewed for the article.

Other highlights from the May/June issue of CFA Institute Magazine:

• Whether crowdfunding poses a threat to investors.
• A look at the MiFID II policy debate in Europe.
• How fair value helps investors and markets.

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