Brian Kovack, who ran for the Finra Board of Governors as a self-described "dissident" candidate, won his bid for a seat on the 24-member board, Finra announced Thursday.
Kovack ran against John R. Muschalek, a managing director at the First Southwest Company in Austin, Texas, who was chosen by Finra’s nominating committee to run for the seat. The election was held Thursday at Finra’s annual conference.
Kovack, co-founder and president of Kovack Securities, a national independent broker-dealer based in Fort Lauderdale, praised the work of Finra but said he feels there are some things that need to be changed.
Such things as the arbitration process for determining when claims can be filed against member firms needs to be reviewed, he says. The time-consuming exam procedure for firms needs to be looked at, and also the broker-check system, which allows the public to research advisors but sometimes includes infractions that are not material to an advisor’s practice, he says.
Kovack will represent midsize firms on the board of governors.
Another election contest to represent small firms on the board was won by Joe Romano, president of Romano Wealth Management in Evanston, Ill.
He was running against Stephen Kohn, founder of Stephen A. Kohn & Associates in Lakewood, Colo.
There was no Finra nominated candidate for this seat. The board of governors has 10 members representing small, medium and large firms for three-year terms.
Candidates have to get support from 3 percent of the firms in their size category to run for a seat. In addition to obtaining enough signatures, Kovack won the endorsement of the influential Financial Services Institute, the leading trade association representing independent brokerage firms. Finra does not release the vote totals.
John W. Thiel, head of Merrill Lynch Wealth Management, was elected without opposition to represent large firms.