The securities industry regulator investigated 19 complaints about trading by Bernard Madoff’s broker-dealer operation since 1999, but could not ask questions about the investment advisory business at the centre of his alleged $50bn fraud because it is not legally authorised to do so.
The Financial Industry Regulatory Authority (Finra) serves as the first line of defence for the Securities and Exchange Commission by inspecting about 5,000 registered US broker-dealers.



