Financial Times FT.com

Finra probed 19 Madoff complaints

By Joanna Chung in New York

Published: January 14 2009 23:34 | Last updated: January 15 2009 00:18

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.

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