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1 August 2012 Inevitable Failure of Self-Regulating Organizations These organizations are responsible for all US investment markets and are not regulated by the SEC, only by themselves. Similar SROs operate in other countries. They issue revisions of their regulations near daily in the Federal Register, thousands per year (968 in 2012 so far, 21,201 since 1994). The regulations' and revisions' arcanity, minutae, variety and volume makes it almost impossible for an investor to determine the risks of investment except through services of a financial advisor who in turn is lightly, if at all, regulated by SROs. The SROs fiercely and continuously lobby against SEC regulation and punishment for self-dealing of favoring the SROs over investors, which is considered to be acceptable business ethics -- caveat emptor. Financial catastrophes can be traced to the inevitable failure of self-regulation. In this duplicity SROs are created and operated for self-protection, alleging public service, like banks, businesses (press, real estate), professions (law, medicine, religion, journalism) and above all, militaries, spies and governments. Parallel: The Inevitability of Failure: The Flawed Assumption of Security in Modern Computing Environments http://www.nsa.gov/research/_files/publications/inevitability.pdf
http://www.sec.govhttp://www.sec.gov/rules/sro.shtml Links go to the SEC website.
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