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.