July, 2010

You’ve heard us say before that “advocacy is not a spectator sport.” You’ve probably also heard the old sayings “all politics is local” and “the political process is about inclusion, not exclusion.”  All of these principles are equally important in a representative democracy designed by its founders to be a government of the people, by the people, and for the people.

It’s been an extremely busy year for FSI’s advocacy efforts – consider that on the table right now are the SEC’s possible changes to 12b-1 fees, the final regulatory reform bill that calls for a study of and permits the SEC to establish a fiduciary standard, FINRA elections, and protecting your independent contractor status.  While Congress will take a break during the July 4^th and August recesses our advocacy efforts won’t. In fact, one of the best times to engage in advocacy – the grassroots kind – will take place during these recesses and by FSI members.

Both independent broker-dealer executives and some of our financial advisor members will be doing what they do best: telling the story of how you support “Main Street Americans” in securing their financial futures. FSI staff have identified key Senators and Representatives with influence on the independent contractor issue and will be helping FSI member constituents get in front of their elected officials during the upcoming congressional breaks.  They’ll meet in small offices in small towns, in suburban homes, and in community settings – all far away from the maddening pace and distractions of Capitol Hill. They may be surprised at the access they’ll have, although they shouldn’t be. All citizens are guaranteed under the Constitution the right “to petition our government to seek redress of grievances.”  It’s part of FSI’s job to help facilitate the access you, our members, have to elected officials and to provide you with the tools to help tell your story.  Together we’re exercising our rights for maximum impact.

The independent contractor issue has the potential to significantly alter the relationship between broker-dealer and advisor and advisor and client. When Congress resumes its work in the fall, we expect that this issue will get the attention it was lacking during the all-consuming health care and regulatory reform period. It’s vital that we ensure that unintended consequences for our industry aren’t the result of proposed legislation designed to correct perceived abuses of contract workers in other industries. Sometimes those unintended consequences can be thought of as the real “weeds” of an issue – and that’s where grassroots efforts can be most effective.

Sincerely,

 
Dale E. Brown, CAE
President & CEO

Click here  to read our Issue Briefing on the independent contractor issue.

Click here to use our Advocacy Action Center to send a letter to your senators and representatives about the independent contractor issue.