Monday, December 23, 2013
San Diego (December 23, 2013) – University of San Diego (USD) School of Law George E. Barrett Professor of Law and Finance and Director of the Center for Corporate and Securities Law (CCSL) Frank Partnoy was quoted in a New York Times article about regulators and their shifting focus to stockbrokers in the fight against fraud.
Last October, Financial Industry Regulatory Authority (FINRA) said that brokerage firms needed to pay more attention to brokers' understanding of complex products. The group outlined ideas it considered effective, such as limiting the ability of brokers to sell a product if they were unable to explain risks to investors.
Some experts are calling for more oversight over such products. Frank Partnoy said he would like to see a broad standard that prohibited brokers from selling products that customers did not understand, even in cases where customers had signed documents that labeled them as "sophisticated."
"There's been a proliferation of complex products on the retail side over the past couple years," he said. "It's sort of shocking it would happen post crisis, so FINRA must be feeling pressure to do something about it."
About Frank Partnoy
Frank Partnoy is the George E. Barrett Professor of Law and Finance and the Director of the Center for Corporate and Securities Law at USD School of Law, where he teaches and writes in the areas of business and corporate law. He is the author of several popular books including: Wait: The Art and Science of Delay (PublicAffairs, 2012), The Match King: Ivar Kreuger, The Financial Genius Behind a Century of Wall Street Scandals (PublicAffairs, 2010), Infectious Greed: How Deceit and Risk Corrupted the Financial Markets (PublicAffairs, 2009), and FIASCO: Blood In The Water On Wall Street (W. W. Norton and Company, 2009). Before joining the USD faculty in 1997, Partnoy worked as an investment banker at CS First Boston and Morgan Stanley in New York, as well as as an attorney at Covington and Burling in Washington, D.C.
About the University of San Diego School of Law
Recognized for the excellence of its faculty, curriculum and clinical programs, the University of San Diego (USD) School of Law enrolls approximately 900 Juris Doctor and graduate law students from throughout the United States and around the world. The law school is best known for its offerings in the areas of business and corporate law, constitutional law, intellectual property, international and comparative law, public interest law, and taxation.
USD School of Law is one of the 81 law schools elected to the Order of the Coif, a national honor society for law school graduates. The law school’s faculty is a strong group of outstanding scholars and teachers with national and international reputations and currently ranks 23rd worldwide in all-time faculty downloads on the Social Sciences Research Network (SSRN). The school is accredited by the American Bar Association and is a member of the Association of American Law Schools. Founded in 1954, the law school is part of the University of San Diego, a private, nonprofit, independent, Roman Catholic university chartered in 1949.