The Financial Services Institute said early Tuesday that its grassroots lobbying work has helped to limit requirements set to be imposed on independent contractors in California. As a result, independent broker-dealers and advisors should not face increased compliance burdens and related costs for a bill being finalized by the state legislature, FSI says.
“This is a big win, not only for our California broker-dealers and financial advisors, but for all broker-dealers and advisors in other states that were watching to see what happened in California before they acted,” said FSI President & CEO Dale E. Brown (left) in a press release.
Recent amendments to California Senate Bill 459 removed the notice and record-keeping requirements for all independent contractors in California. Instead, only firms found to have engaged in willful misclassification of independent contractors will have to comply with new notice requirements via a website or office posting.
“This win will hopefully temper any thoughts from other state legislatures about going down a path that will ultimately hurt hard-working Americans’ ability to secure affordable, unbiased financial advice, especially during these hard economic times,” Brown said in the statement. “We thank our numerous broker-dealer and financial advisor members who really stepped up to the plate and took this issue head on from a grassroots campaign effort. We couldn’t have done this without them.”
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During the spring and summer, FSI’s government affairs counsel, Matt Schwartz, worked on the group’s advocacy efforts in the Golden State, participating in a coalition of like-minded advocacy groups.