Broker Challenges FINRA as Monopoly in New Attack on Regulator

The Financial Industry Regulatory Authority Inc. is monopolistic and unconstitutional, a broker says in a suit that adds to allegations in a separate case brought by two of the private regulator’s other enforcement targets.

FINRA’s actions violate the Sherman Antitrust Act, Eugene Kim says in his complaint, filed Aug. 18 in the US District Court for the District of Columbia. It has obtained its revenue, dramatically increased from a decade ago, by “abusing its quasi-governmental status to make its members pay up or lose their livelihoods forever,” Kim says.

The statutory scheme allowing for financial industry self-regulation “not only granted ...