Brian Kovack is running for a seat on the Finra board of governors as what he calls a “dissident” member.

Though Finra has its own nominating committee for board memberships, it allows outsiders with enough support from member firms to run against these nominees, and that has allowed Kovack to run in the name of a group of firms he thinks need more support: midsize advisories.

Not only does he have enough support, but he’s also snagged the endorsement from bigger guns at the Financial Services Institute, the leading trade association representing independent brokerage firms.

To win the right to run for the board, Kovack had to obtain support from at least 3 percent of midsize member firms, although he says he has more than that. The Financial Services Institute, which represents independent financial advisors as well as broker-dealers, announced Thursday it is supporting Kovack in his bid for a seat on the board.

Dale Brown, FSI’s president and CEO, says, “We are very pleased to endorse Brian for this important position. Having an owner of an independent firm on the Finra board is critical for our industry. Brian will bring the invaluable experience of running a family-owned firm and a track record of service and leadership in the industry to the Finra board. We strongly urge all firms to vote for Brian -- he will be a tremendous representative for our industry.”

Kovack, president of Kovack Securities, has a wide range of experience in the financial industry serving on boards and working with financial organizations.

“I have an opportunity for the next three years to have a voice [by being elected to] the only seat available to midsized firms,” he says. “Change can be a positive. This is an opportunity for me to present reasonable, smart opinions on the rules and regulations.”

The elections for Finra’s 24-member board of governors will take place at the Finra annual conference on July 30. Ten seats on the board are reserved for industry representatives from small, medium and large firms, while only one seat is designated for midsize firms with 150 to 500 registered representatives.

Kovack is running against John R. Muschalek, who was chosen by Finra’s nominating committee. Muschalek, managing director at the First Southwest Company, is head of the firm’s correspondent clearing and securities lending divisions. (He is out of the country and said in an e-mail he will comment on the election when he returns.)

Although Kovack says Finra has done an excellent job in recent years of updating regulations and overseeing brokerage firms and registered securities representatives, he feels some areas are being neglected.

For instance, the arbitration process for determining when claims can be filed against member firms needs to be reviewed, he says.

The widely used broker check maintained by Finra on its website, which allows members of the public to check the history of brokers and registered representatives, is a good thing, according to Kovack. But he says it also currently requires listing minor reporting disputes that have no bearing on a broker’s abilities.

He also praises Finra for updating its exam process, but he questions the length of time it sometimes takes to complete the exam, which can be a drain on the resources of a firm. He does not advocate setting a time limit, but says the issue should be looked at in the future for possible solutions.

Kovack co-founded his namesake firm, a privately owned independent broker-dealer, along with his father, Dr. Ronald Kovack, in 1998 in Fort Lauderdale, Fla. He has also served on the NASD Board of Governors and in 2006 he served on the Finra Interim Board of Governors as a midsize firm representative. He recently completed a three-year term on the Finra District 7 Committee and served a one-year term on the Finra Regulatory Advisory Committee in 2013. He has served as a Finra dispute resolution arbitrator since 2003, and in 2004 completed the Finra Institute at Wharton Program, where he earned the certified regulatory and compliance professional designation.

“Finra has done a great job in developing regulations and in its oversight, but there still needs to be reform, and it needs to start at the top,” Kovack says. “They need to protect investors while not unnecessarily antagonizing the members.

“The board has good intentions, but at times regulations can be unnecessarily burdensome to firms.”

Kovack adds he anticipates no hard feelings from the professionals who serve on the board were he to be elected.