Parker Waichman LLP

Madoff Ponzi Scheme Prompts Calls to Regulate Financial Planners

Stricter Oversight of Money Managers. In the wake of the Bernard Madoff Ponzi scheme debacle, a group of financial planning organizations is calling for stricter oversight of money managers. The coalition, made up of the National Association of Personal Financial Advisors, the Financial Planning Association and the Certified Financial Planner Board of Standards Inc., is […]

Madoff Ponzi Scheme

Stricter Oversight of Money Managers. In the wake of the Bernard Madoff Ponzi scheme debacle, a group of financial planning organizations is calling for stricter oversight of money managers. The coalition, made up of the National Association of Personal Financial Advisors, the Financial Planning Association and the Certified Financial Planner Board of Standards Inc., is advocating for the formation of a national oversight board to set standards and enforce fiduciary duty for financial planners.

Madoff pleaded guilty to 11 fraud counts on March 12. The former chairman of the Nasdaq stock exchange ran an investment advisory business for decades that was, in reality, a Ponzi scheme. Last November, Madoff told his investors that his fund held more than $64 million, but in reality, he only had a fraction of that amount.

The Madoff scandal, along with some smaller Ponzi schemes and the global banking meltdown, has hurt the reputation of financial planners, the coalition said. The group also pointed out that the current patchwork regulation of financial advisers and lack of clarity around the qualifications of financial advisers creates confusion for investors.

They’ve Been Holding Exploratory Meetings With Lawmakers.

According to The Wall Street Journal, the group, which goes by the moniker the Financial Planning Coalition, said they’ve been holding exploratory meetings with lawmakers, regulators and consumer organizations. They’re aiming to influence decisions about financial industry reform, the Journal said.

The regulatory organization the coalition seeks would set ethical and competency standards for financial planners. It would also create rules requiring financial planners to put their clients’ interests first. As proposed by the coalition, the regulatory board would oversee individuals who provide financial planning services – not financial planning firms. The organization would be overseen by the Securities and Exchange Commission (SEC), and it would not replace existing regulators, such as states and the SEC, the Journal said.

According to Bloomberg.com, the group is trying to prevent the Financial Industry Regulatory Authority (FINRA), a non- governmental body that oversees almost 5,000 brokerage firms, from taking on the oversight of financial planners. The group points out that because FINRA is charged with weighing suitability of financial products, it has inherent conflicts of interest because brokers sell products.

Need Legal Help Regarding Bernard Madoff Ponzi Scheme?

The personal injury attorneys at Parker Waichman LLP offer free, no-obligation case evaluations. For more information, fill out our online contact form or call 1-800-YOURLAWYER (1-800-968-7529).

What Our Clients Say About Us
We have worked with thousands of clients and we appreciate them and their positive reviews. Here are just a few recent client reviews...
5 Star Reviews 150
Ashley L worked with me kept me updated and informed on everything that was going on with my case in a timely and professional manner.
Larry Lutes
3 years ago
5 Star Reviews 150
My daughter was in a bad car accident and I was so overwhelmed by everything happening. Ms. Josama and Gillian made me feel at ease during that process and worked their best on my daughter's case. I would surely work with Parker Waichman again. Thanks guys.
Marjorie Rene
5 years ago
5 Star Reviews 150
I would like to thank and recommend Parker Waichman LLP to anyone who has a loved one in a nursing home and is not satisfied with the poor inr care and neglect most of them provide, I was assigned a paralegal named Cindy Custodio who has been there every step of the way to answer any questions I have, she's very knowledgeable and patient, and makes sure I have all the info I need..she also went out of her way to give me advice on how to obtain all the proper paperwork I needed for the lawyer but also advised me on how to get the best care for my elderly father after being put through a very traumatic experience..... She's a truly good person and very caring also, I'm thankful for all of her help and just wanted to let Parker Waichman know what a valuable asset she is to your firm! Thank you for everything Cindy!!!
Scott
5 years ago

Why Choose Us to Help You?

We Take Care of Everything
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
No Recovery = No Legal Fees
We work on a contingency-fee basis, meaning that we only get paid from a portion of your settlement or jury award. If you don't get compensation, you owe us nothing.
Decades of Experience
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
Respected by Our Peers
Judges, insurance adjusters, and fellow attorneys all speak highly of our skills, and we've earned numerous accolades, including a flawless rating from AVVO.
We Have Many Locations To Serve You
We have the experience and the skilled litigators to win your case. Contact us and speak with a real attorney who can help you.
Long Island – Nassau
Parker Waichman LLP
6 Harbor Park Drive
Port Washington, NY 11050
Long Island – Suffolk
Parker Waichman LLP
201 Old Country Road – Suite 145
Melville, NY 11747
New York
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038
Queens
Parker Waichman LLP
118-35 Queens Boulevard, Suite 400
Forest Hills, NY 11375
Brooklyn
Parker Waichman LLP
300 Cadman Plaza West
One Pierrepont Plaza, 12th Floor
Brooklyn, NY 11201
New Jersey
Parker Waichman LLP
80 Main Street, Suite 265
West Orange, NJ 07052
Florida
Parker Waichman LLP
27299 Riverview Center Boulevard
Suite 108
Bonita Springs, FL 34134
Nationwide Service
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038