The Financial Services Institute’s business model, which includes having the independent broker-dealer pay the first-year membership for its advisors, is continuing to pay dividends.
The advocacy organization announced 500 new members through Kovack Securities and Geneos Wealth Management in October. On Tuesday, it further announced that 250 independent financial advisors from Girard Securities are now new FSI members.
The organization says that the renewal rate once the year expires is running at an average of 70%, since advisors “recognize the value” of their membership.
That value includes: access to analyses of regulatory and legislative proposals; an Advocacy Action Center to communicate with legislators and regulators; opportunities to visit Capitol Hill and educate lawmakers; and access to FSI’s Financial Advisor Summit and FSI publications and communications.
“Everything we do is aimed at increasing our advocacy success,” FSI CEO Dale Brown said in a statement announcing the Girard memberships. “Regulators and lawmakers pay attention when our members, their constituents, are engaged in the policymaking process. Once again, our collective voice is growing stronger and more influential. The momentum our members are creating speaks loudly that every independent financial advisor should join the fight to protect their business by becoming an FSI member.”
The organization also said members now have access to two tools to help them sell the value of independence to prospective clients in order to grow their businesses. A 60-second video and corresponding infographic can be downloaded for free at financialservices.org/store. Both tools have received review letters from FINRA and are client-ready.
“Financial advisors in the independent broker-dealer industry have been helping the investing public realize their financial goals for more than three decades,” Girard Securities’ CEO and president, Susan Tietjen, added. “During this time period, regulations have increased dramatically, thereby increasing compliance costs for firms and making it more difficult for advisors to service and support their clients. Given the highly regulated nature of our business, it is essential that we have a voice and an advocate in the legislative process. The Financial Services Institute provides us with both. Therefore, it is a great privilege to offer FSI membership to our advisors. It’s their chance to get involved and make their voice heard.”
FSI was established in January 2004 and has 100 financial services firm members and more than 35,000 financial advisor members. FSI says member firms have upwards of 160,000 financial advisors affiliated with them.