Opportunities for Impact: Letter to Members

So far in 2023, market indexes have performed well overall, with the S&P 500, Dow and NASDAQ all notching solid year-to-date gains. However, it hasn’t always been smooth sailing. Along the way, we’ve encountered numerous bouts of head-spinning volatility.

Going forward, no one knows for sure whether the Federal Reserve will be able to tame inflation or where interest rate policy will go next. As a result, Main Street investors need the type of quality financial advice our members provide. However, we’ve seen a rapid influx of worrisome regulations that would severely restrict access to professional financial advice and services when they are needed the most.

Fast and furious rulemaking

The SEC, for example, has issued an astonishing number of rule proposals this year. The sheer volume of them makes it difficult, if not impossible, for the public and the industry to offer thoughtful, informed and constructive feedback.

To make matters worse, few of the proposals under consideration would do anything to enhance investor protection meaningfully. In truth, many of them would be counterproductive, resulting in advisors having to contend with needless roadblocks when trying to help their clients save for the future.

The Department of Labor

Fanning the flames further is the Department of Labor, which released the latest version of its fiduciary rule in October, renaming it the Retirement Security rule. The Department first pursued this type of rule 13 years ago. Eventually, the courts thwarted their efforts after FSI and other industry groups put forth a legal challenge.

Back then, we were concerned with Main Street American investors losing access to advice. Fast forward to today, and our concerns remain the same.

Meanwhile, the Office of Management & Budget is finishing its review of the DOL’s final independent contractor rule, which we anticipate will be released soon. It’s unclear exactly what is in the rule, but we expect it to create significant challenges for our industry – potentially resulting in the reclassification of independent financial advisors as employees of their broker-dealer and/or RIA.

In response to this development, we have created the FSI Advisor Independence Fund, which will provide the additional financial resources needed to support our full-scale advocacy push on this issue. That includes litigation, if necessary.

Firm members, you can download this firm pledge form and return it via e-mail. The form includes a suggested contribution chart based on your firm’s annual membership dues. It also allows you to specify the date to receive the invoice to best align with your firm’s budget. 

Financial advisors, you may contribute individually to the fund via our online form. Alternatively, if you would like to pay by check, you may print and complete the PDF form and mail it with your check to FSI.

Your voluntary contribution will assist us in pursuing all avenues to defend advisors’ independence against the DOL’s independent contractor rule. If you have any questions, please do not hesitate to contact our team at [email protected]. 

FSI’s 20^th Anniversary & OneVoice 2024

2024 marks our 20th anniversary. We have accomplished a lot as an organization and an industry in the last two decades, and we’ll achieve even more in the coming years. Over the course of the year, we’ll celebrate and reflect on the results we have achieved and look ahead at what’s to come. 

I encourage our firm member executives to join me at OneVoice 2024 on January 29-31 in Orlando, Florida. As always, the event will be an excellent opportunity to network, share best practices with peers and learn about the latest regulatory updates. 

I look forward to seeing everyone there as we kick off our year-long, 20th anniversary celebration. Registration is now open. 

As always, I thank you for your continued support and engagement.

Sincerely,

Dale