08.21.19
BISA-Endorsed Petitioner Wins FINRA Board Seat
by: Rich Blake
Pledging to give greater voice to retail advisory firms at their most pivotal juncture, ProEquities CEO Chris Flint was elected to the FINRA Board of Governors on Aug. 19, 2019.
Flint upset the FINRA-endorsed incumbent, Andrew Duff, former chairman of Piper Jaffray.
It was a quick but effective three-week campaign for write-in candidate Flint, who secured critical endorsements from both the Bank Insurance and Securities Association (BISA) and the Financial Services Institute (FSI). Using traditional media and social platforms, the 48-year-old hammered home his central message about the need to put an end to "rulemaking by enforcement."
“I’m honored by the support of FINRA’s voting members and grateful to both FSI and BISA for their respective endorsements," Flint said after the votes were tallied during FINRA's annual member meeting in Washington, D.C.
"I’m excited to represent the views of all FINRA-member firms, while advocating for the key issues that I emphasized throughout my candidacy," he said, referring to his push for a more constructive rulemaking process, a more level regulatory playing field between broker-dealer and RIA sectors and, above all else, a commitment to investor protections.
In an interview earlier this month with BISA Portfolio, Flint described the financial-advice industry as undergoing dramatic changes reflecting “a greater awareness of, and emphasis on, placing the interests of clients first.”
"Chris Flint's election will bring a fresh and objective perspective on behalf of both investors and financial advice-focused firms,” BISA Executive Director Jeff Hartney said. "We were pleased to join forces with FSI in endorsing him."
Echoing pride was Dale Brown, CEO of FSI. Brown told Plan Adviser that one of the organization’s major objectives has been to “make the value of the independent model to investors better understood by all stakeholders."
Flint is now the third FSI-backed petition candidate in the past four years to secure a FINRA Board seat. BISA’s entrée was a milestone – prior to Flint, the organization had never endorsed any FINRA Board candidates.
Even with backing from these important trade organizations, the notion of a write-in candidate challenging an entrenched brokerage heavyweight was met by some industry members with surprise. Eyebrows on Wall Street probably went higher as news of Flint's victory was announced.
Now that the SEC has set a June 2020 deadline for implementation of broadly set out Regulation Best Interest rules, it falls upon FINRA to fill in the details and guide the industry toward compliance.
FINRA’s Board of Governors consists of two dozen members — 10 from the industry (a mix of small, medium and large firms) and 13 from the general public, as well as FINRA Chief Executive Robert Cook.
“Our new Board members bring with them a broad array of backgrounds and experiences,” Cook said after the election.
“Their diverse perspectives will be a valuable contribution to our ongoing commitment to protecting investors and ensuring vibrant markets.”
Flint joins as a Large Firm Governor. He is one of three representatives of large firms on the FINRA Board. His three-year term is effective immediately.