Independent broker/dealers and investment advisors lobbied members of Congress with a three-pronged message during the Financial Services Institute’s (FSI) Public Policy Day in Washington September 13. FSI members hammered home to lawmakers that more than ever, Americans need financial advice and advisors and broker/dealers are best suited to provide it; independent advisors and some broker/dealers are small businesses and their ability to service their clients is jeopardized by burdensome regulations; and last, but not least, Congress should support H.R. 4618, the Compliance, Inspections and Examinations Restructuring Act of 2005. FSI members told lawmakers they support H.R. 4618–which was introduced by Rep. Vito Fossella (R-N.Y.) in December 2005–because it would require the SEC to “make important changes to its examination and enforcement processes, resulting in more effective regulation without piling on more burdens, particularly for independent advisors.”
Before taking their messages to the Hill, FSI members got to hear what’s on the mind of regulators these days. SEC Commissioner Annette Nazareth was on hand to tell FSI members that the SEC will continue to focus on three troublesome areas–inappropriate sales of variable annuities, suitability issues surrounding 529 college savings plans, and sales of “complex” products to seniors.