Critical Legislation to Help Protect Financial Advice in Florida Passes Legislature

Financial Services Institute / Critical Legislation to Help Protect Financial Advice in Florida Passes Legislature

Critical Legislation to Help Protect Financial Advice in Florida Passes Legislature

May 3, 2013

WASHINGTON, D.C. – The state of Florida is one step closer to protecting investors’ access to affordable, independent financial advice, thanks to legislation that unanimously passed the Florida Senate today. While this pertains to Florida, the implications are nationwide, since it affects every financial services firm with affiliated financial advisors in Florida, regardless of where the firm is headquartered.

Now that both chambers have unanimously passes this legislation, it now will be sent to the governor, who is expected to sign it into law in the next week or two. The Financial Services Institute (FSI) worked closely with the bill sponsors in crafting this legislation.

“Once signed into law, this will be another historic step forward for FSI members, who have united once again to affect positive change,” said Dale Brown, FSI President & CEO. “We applaud the elected officials and the Florida Office of Financial Regulation who all came together with our members to make positive difference. This is exactly how government/private partnerships should work to serve our mutual constituencies. And it shows how much FSI’s members can accomplish when they work together and speak with one voice.”

The Florida state Senate Banking and Insurance Committee unanimously passed SB 814 last month which, when signed into law, will make Florida a “notice-filing state” for branch office applications. The House Regulatory Affairs Committee also unanimously passed the companion bill just last month.

Florida becoming a notice-filing state is critical for our industry and investors because financial advisors have been forced to close down for extended periods of time, losing revenue and denying clients access to their advice, due to their applications not being approved in a timely manner. Some scenarios of when advisors need to re-file, or file for the first time, which cause the problem includes:

  1. When an advisor changes broker-dealer affiliation
  2. When an advisor moves his current office address to another address
  3. When a firm – operating in another state – wants to open a new branch office in Florida

While FSI has been working with the Florida Office of Financial Regulation (OFR) for some time, and has cut the approval process from weeks to four-to-five days, the timeframe is still unacceptable. This legislation, once signed into law, will place the filing system online and mandate approval be automatic, keeping the advisor working and protecting clients’ access to their advice.

After working with OFR to find common ground on the legislation language, FSI agreed to language that makes Florida a notice-filing state, but allows OFR to require BDs to resolve deficiencies in their filing within 30 days.

About the Financial Services Institute (FSI): FSI is an advocacy organization for independent financial services firms and independent financial advisors. Established in January 2004, FSI has over 100 financial services firm members and over 35,000 financial advisor members. FSI member firms have upwards of 160,000 financial advisors affiliated with them. FSI’s mission is to create a more responsible regulatory environment for independent broker-dealers and their affiliated independent financial advisors through effective advocacy, education and public awareness. FSI’s strategy includes involvement in FINRA governance, constructive engagement in the regulatory process and effective influence on the legislative process. For more information, please visit