FINRA submitted a written response to an age discrimination lawsuit filed by ousted District 10 Director Hans Reich.  Mr. Reich, 66, filed his suit on 8/30/11, saying he was forced out of his job, effective 3/31/11, to make way for a younger, more "active" replacement.  Hans Reich was hired in March 2004 as SVP for the 213 employees in FINRA's New York District 10, which includes NYC's 5 boroughs and Long Island. In FINRA's court filing last Wednesday, the regulator noted that Mr. Reich's “management style conflicted with [Ms. Susan] Axelrod and, after observing his discharge of his responsibilities in her new role, Axelrod concluded that his performance was inadequate in that he failed to supervise his subordinates, lacked visibility in the brokerage community, and failed to exercise leadership of the offices in his charge." No further comment was made by FINRA spokespersons.

[Susan Axelrod is an EVP for FINRA's Member Regulation Sales Practice, and the successor to Mr. Reich's former boss, Bob Errico.]

Complaint Filed by Hans Reich. According to his August complaint, Mr. Reich was told by Susan Axelrod in December 2010 that she wanted the New York region to be led by someone more "active, engaged and involved," and that Reich's employment would be terminated the following March 31.  Mr. Reich noted that "Ms. Axelrod's use of the word 'active' implies that, based on plaintiff's age, he is somehow 'inactive'."  He also said Ms. Axelrod declined to provide any additional reasons for his termination. Reich said he had received uniformly positive feedback during his employment and that his firing was motivated primarily by the organization's intent to replace him with someone younger.   He claims he never received a performance evaluation from Ms. Axelrod who took over her current position in July 2010. In an amended complaint filed this month, Mr. Reich added that in 2007, 2008 and 2009, he was rated as an "exceptional contributor" and given a high score under Finra's review system.  He also claims he consistently received raises and bonuses during his FINRA career. Hans Reich seeks damages and back pay from his former employer under federal and state anti-discrimination statutes, including his 2010 bonus, which he claims was withheld even though he remained with FINRA until March 2011.   [Reuters, 8/30/11;  InvestmentNews, 10/28/11]