Promoting Innovation and Protecting Investors: FSI’s 2026 Advocacy Priorities

Each year, FSI sets advocacy priorities grounded in a simple but important principle—the independent financial services industry helps millions of Americans pursue financial goals, and that work depends on a policy environment that supports independent advice, not one that complicates it.

Our 2026 agenda is designed to expand investor access and choice, preserve advisor independence and advance a regulatory framework that is transparent and practical.

As business models and technology rapidly evolve, rules and guidance must keep pace with how advisors and firms operate today. At the same time, investor protections cannot be treated as an afterthought. The priorities below reflect that balance, promoting innovation while protecting the Main Street investors most independent advisors serve.

Defending Advisors’ Independent Contractor Classification

Our independent financial advisor members are entrepreneurs and small business owners. They have built businesses within their local communities, providing access of professional financial advice to hard-working Americans. In 2026, we will focus on practical policymaker engagement and legislative solutions that protect that model, including by:

• Engaging with federal and state policymakers on independent contractor rulemaking and guidance.
• Building support for the Modern Work Empowerment Act.
• Opposing restrictive state laws that threaten independent business models.

Investor Access & Choice

Americans have diverse financial goals and increasingly complex needs. We will advocate for policies that expand access to financial advice, products and services, while maintaining strong investor protections. To accomplish that goal, we will prioritize efforts to:

• Promote regulatory consistency and alignment with the SEC’s Regulation Best Interest.
• Support expansion of the accredited investor definition.
• Champion flexible compensation arrangements that support efforts to recruit the next generation of financial advisors.
• Expand appropriate access to alternative investments and private markets.
• Advance clear regulatory frameworks for cryptocurrency.

Modernization & Innovation

As technology evolves and investor expectations shift, rules and guidance must encourage innovation in modern advisor business models and practices, while supporting investor protection. Our modernization agenda is focused on ensuring that rules keep pace with how advisors and firms actually operate today, including by:

• Supporting practical, innovation-friendly artificial intelligence (AI) and technology regulation.
• Modernizing off-channel communication, e-delivery and recordkeeping requirements.
• Harmonizing cybersecurity and privacy frameworks across federal and state jurisdictions.
• Promoting responsible AI use throughout the financial services industry.

Ending Regulation by Enforcement

We have long opposed the use of enforcement activity to establish new regulatory requirements, also known as regulation by enforcement. In 2026, we will continue pressing for a regulatory approach that is clear, transparent and established on due process by:

• Advocating for structural reform to ensure transparency and procedural fairness.
• Encouraging durable, principles-based rulemaking grounded in sound economic analysis.

Investor Education & Protection

Financial education is essential to equip Americans with the knowledge that will help them achieve financial security. At the same time, rapidly evolving technology and an aging population have increased the risk of fraud and financial exploitation. Financial advisors are often the first line of defense against financial fraud and exploitation. To strengthen investor resilience and reduce preventable harm, our work in this area will focus on:

• Advocating for report and hold rules, such as the Financial Exploitation Prevention Act.
• Promoting financial literacy for all ages across the country.
• Advancing efforts to prevent fraud related to AI, deepfakes and digital content scams.

Investment Adviser Advocacy

Investment adviser regulation must reflect modern advisory operations, including the realities facing small firms. To ensure RIA oversight reflects real-world operations and does not impose unnecessary burdens, we will focus on:

• Advocating for modernization of RIA obligations, such as e-delivery, AML and cybersecurity.
• Promoting balanced AML/CFT compliance, minimizing small-firm burdens.
• Supporting harmonization between SEC and state frameworks.

We look forward to the year ahead, advocating on your behalf and making progress on these important issues. However, advocacy is not a spectator sport. Your engagement is critical to the success of FSI’s advocacy mission.

If you would like more information or to get involved in our advocacy efforts, please contact our Advocacy Team.