About 150 financial advisers and brokers will be hitting Capitol Hill tomorrow to ask about half of the nation's Congressional members to protect the investment advice industry – at least in the way the Financial Services Institute believes the industry should be protected.
The FSI will ask lawmakers to support Finra as a self regulatory organization for investment advisers. It will also look to help shape the Labor Department's fiduciary proposal which is expected early next year. The association also wants to preserve independent broker-dealers ability to classify registered representatives as independent contractors and to preserve mutual fund fees.
"We are poised for the greatest change in our regulatory landscape in 70 years," said Bill Dwyer, president of national sales for LPL Financial in opening a two-day FSI meeting in Washington. "Members do listen and volume counts."
FSI President Dale Brown pointed out the industry group has already won "at least a temporary victory" when the Labor Department last month announced it was withdrawing its controversial plan to expand the definition of "fiduciary" for advisers to retirement plans. The department has said, however, that's its new proposed rule will still address Individual Retirement Accounts, which worries advisers.
Michael Davis, a deputy secretary at DOL, addressed the FSI crowd after DOL assistant secretary Phyllis C. Borzi cancelled her appearance a couple hours before she was due. He said the new proposal will be issued early next year along with a series of exemptions on issues such as revenue sharing and principal trading.
"Our concern is with conflicts," he said. "We are not trying to shut down the investment advice marketplace and we are putting it in writing."
