FSI, Coalition Challenges 2024 DOL Independent Contractor Rule 

March 5, 2024

WASHINGTON, D.C. – Today, the Financial Services Institute (FSI), along with the Associated Builders and Contractors (ABC), the American Trucking Association (ATA), the Coalition for Workforce Innovation (CWI), the National Retail Federation (NRF), the National Federation of Independent Business (NFIB), and the U.S. Chamber of Commerce filed an amended complaint in the U.S. District Court for the Eastern District of Texas against the Department of Labor (DOL). 

The complaint challenges the 2024 Independent Contractor Rule, arguing that the rule is arbitrary and capricious under the Administrative Procedure Act and also violates the Regulatory Flexibility Act. The coalition asks the court to declare that the 2021 Independent Contractor Rule remain in effect.

Below is a statement from FSI President & CEO Dale Brown regarding the filing:

“Independent financial advisors choose to be independent so that they can operate their own businesses and better serve their clients. We remain committed to ensuring our members maintain that choice and have security in their classification status. Our members should not have to risk losing their independent contractor status because, for example, they are complying with federal and state securities rules. The 2021 Independent Contractor Rule helped provide much-needed certainty and clarity regarding our financial advisor members’ classification as independent contractors. However, the 2024 Rule renews uncertainty, creating burdens for advisors and firms which ultimately increases costs and limits Main Street Americans’ access to professional financial advice, products and services.”

FSI and its coalition partners request that the court declare the 2024 Rule invalid, prohibit its implementation, and allow the 2021 Independent Contractor Rule to remain in effect. Click here to read the full complaint.

About the Financial Services Institute (FSI): The Financial Services Institute (FSI) is the only organization advocating solely on behalf of independent financial advisors and independent financial services firms. Since 2004, through advocacy, education and public awareness, FSI has successfully promoted a more responsible regulatory environment for over 80 independent financial services firm members and their 130,000+ affiliated financial advisors – which comprise over 60% of all producing registered representatives. We effect change through involvement in FINRA governance as well as constructive engagement in the regulatory and legislative processes, working to create a healthier regulatory environment for our members so they can provide affordable, objective advice to hard-working Main Street Americans. For more information, please visit financialservices.org

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