The Chilling Effect of an Over-Zealous FINRA’s Gibbeting
November 11, 2016 by Jon Henschen, as featured on ThinkAdvisor Displaying the bodies of executed criminals in public was a common practice in medieval times. The authorities did so to deter anyone from considering committing similar crimes. The practice, known as “gibbeting” refers to the mechanism from which the corpses of the criminals were hung when put on public display. FINRA also does gibbeting, although metaphorically, through FINRA BrokerCheck as well as the numerous press articles on advisor misdeeds we see daily. The trend over the last few years reveals that issues previously either not on FINRA’s radar or considered minor issues are now not only a big deal but potentially a career ender. Unintended Wrongdoing or Felony Offense? My intent is not to diminish the severity of legitimate wrongdoing, such as embezzling a client’s...