Tom Vallarino's (NIPC Pres.) letter of 3/30 to OIG
Audit Request – Failure of SRO Oversight
National Investor Protection Coalition
1452 South Rimpau Ave., Suite 108,
Corona, Ca 92879
www.Investorprotectioncoalition.org
“Advocates for the Protection of Equity Securities Investors and Issuers”
March 30, 2009
U.S. Securities and Exchange Commission
Office of Inspector General
Attn: Assistant Inspector General, Audits (Audit Request/Ideas)
100 F Street, N.E.
Washington D.C. 20549-2736
Dear Jacqueline Wilson:
Under Sections 19(g) and 19(h) of the Securities Exchange Act of 1934, an SRO is required to,
1) comply with the provisions of the Securities Exchange Act, the rules and regulations
promulgated thereunder, and its own rules (collectively, the "Governing Rules"); and 2) to
enforce that its members, and persons associated with its members, comply with the
Governing Rules.
In light of clear and serious violations of the governing rules by SRO members, it appears there
is a deliberate effort by the SROS to allow their members to skirt the governing rules, allowing
them to cause settlement failures, and that the SEC is ignoring its authority and obligation to
compel the SROs to enforce compliance with the governing rules regarding settlement.
By failing to settle and deliver securities as contracted, selling broker-dealers violate the
governing rules regarding settlement and buying broker-dealers misrepresent the number and
type of securities held for customers after the settlement date. These violations are components
of “naked short selling”.
Continued at:
investorprotectioncoalition.org |
