WASHINGTON – Richard Ketchum plans to retire as chairman and chief executive of the Financial Industry Regulatory Authority in the second half of 2016.
The authority's governors will consider internal and external candidates to succeed Ketchum, who has been chairman of the board since 2007 and CEO since 2009, FINRA said in a press release Friday. Ketchum, 64, said he is proud of FINRA's achievements over the past six years.
"We have been at the forefront of investor protection in our aggressive efforts to help enforce the rules that are so crucial to fair financial markets," he said in the release. "Our accomplishments are founded on a commitment to excellence in our core competencies: examinations, enforcement, rulemaking, market transparency and market surveillance."
Ketchum also complimented the FINRA staff, saying he has been "honored to work with an incredibly dedicated and talented group of professionals" who take investor protection seriously. The regulator is "well-placed to continue to play an important role in educating and protecting investors in the years ahead," he said.
Jack Brennan, FINRA's lead governor and former CEO of Vanguard Group, said Ketchum "has put FINRA on the front line of the movement for stronger investor protections and greater market integrity" by championing initiatives like the High Risk Broker program, as well as improving FINRA's BrokerCheck and expanding TRACE reporting of asset-backed securities.
"Under Rick's management, FINRA has emerged as a leader in the reshaping of American financial regulation and helped to restore the faith in the capital markets that forms the bedrock of our financial system," Brennan said.
SEC chair Mary Jo White also praised Ketchum as "a strong regulator who combines brilliance with a deep knowledge of [the] markets."
Ketchum came to FINRA from the NYSE where he was CEO of NYSE regulation. He also spent 12 years working at NASD, which along with NYSE regulation was a predecessor to FINRA, and The Nasdaq Stock Market, Inc.
Prior to those positions, he served as director of the Securities and Exchange Commission's division of market regulation.
FINRA is the largest independent regulator for securities firms doing business in the United States and has recently focused some of its attention on violations associated with Puerto Rico bonds. It ordered San Juan-based Santander Securities to pay more than $6.4 million for supervisory failure related to Puerto Rico bonds on Oct. 13. UBS Financial Services, Inc. of Puerto Rico also recently reached an agreement with FINRA and the SEC to pay $34 million over charges that it failed to supervise the suitability of transaction in Puerto Rican closed-end fund shares.
FINRA is also coordinating with the Municipal Securities Regulatory Board on proposals designed to allow investors to understand the markups dealers charge on transactions as well as separate guidance on best execution rules for municipal and corporate debt.
