WASHINGTON, D.C. – Today, the U.S. Department of Labor (DOL) released its final independent contractor rule that defines whether a worker is an employee or independent contractor under the Fair Labor Standards Act.
Below is a statement from Financial Services Institute (FSI) President & CEO Dale Brown:
“While we continue to analyze and review the rule, FSI remains committed to preserving independent financial advisors’ ability to choose to operate as independent contractors. We fear the DOL’s final rule will undermine our financial advisor members’ independent contractor status, despite thousands of comment letters, multiple hearings and many meetings in which stakeholders, including our members, expressed their desire to remain independent. Independent financial advisors are entrepreneurs who have built a strong presence in their communities, own their own businesses, pay business taxes and hire their own staff. If they are forced to be employees, this could adversely harm Main Street Americans’ access to their local trusted financial advisor. The independent contractor status is vital to our members, and FSI is ready to leverage all our advocacy tools to ensure it remains protected.”
The rule replaces the Department’s 2021 rule that FSI supported because of the clarity and security it provided independent advisors regarding their independent contractor status.
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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