The financial industry created self-regulatory organizations (SROs) to police themselves (in theory) more effectively than the government. They set up rules of ethics and policies and have the power to fine companies and bar individuals. Agencies like the SEC let them take the lead, but will step in to investigate fraud and crimes. The industry may need to mature, but this would probably be the most sensible solution.
The financial industry collapses and needs to be rescued every ~10 years (S&L crisis in the 80s, Long Term Capital Management in the 90s, Great Recession in the 00's). Last time they crippled the world economy. Massive fraud is commonplace, based only on the fines they pay. I don't see them as a model of success!
The financial industry is enormous and diverse. What I was referring to specifically was the US equity markets and FINRA. They have been very stable and reliable through the years. Commercial and mortgage lending is a whole other ball of wax.
