Even though the firm was never accused of misusing clients' money, its failure to provide timely accounting was extreme and repeated. Since it is obvious that compliance with the Custody Rule is (and should be) an SEC priority, the fact that the firm's principals did not take any action to correct the initial failures reflects bad judgment.

From a policy standpoint, the question is whether the increasing constraints on, and rules around, publishing research, result in (or have resulted in) a material dimunition in the amount of research published, and, if so, whether the lesser amount of research is better for being conflict-free.  The business model for producing research obviously becomes less compelling as the regulators force research to be separated from other related businesses.  At what point do well-intended…

Why are small and medium sized companies electing to stay private, raising money through private offerings instead of going public? This is a big question, but one that would benefit from serious ongoing examination. Perhaps, the ability to raise money through SEC registration and the freedom to provide liquidity through exchange trading are not carrots that could make suffering the stick of regulatory requirements a hurt worth enduring.

Legislators and regulators have constructed a complicated and burdensome regulatory system that imposes massive fixed costs on firms. At the same time, they have championed central clearing and the general standardization of financial products. Isn't it obvious that the combination of high fixed costs and product standardization results in small and medium sized firms losing business because they lack the scale to support the fixed costs and have no way to distinguish themselves with…