Lobbying costs at Finra down from last year

Pullback on push for adviser SRO is one big reason

Jul 21, 2013 @ 12:01 am

By Mark Schoeff Jr.

Finra CEO Richard Ketchum backed off the organization's push to create an adviser SRO.
+ Zoom
Finra CEO Richard Ketchum backed off the organization's push to create an adviser SRO. (Photo: Bloomberg News)

The Wall Street regulator of broker-dealers has decreased its spending on lobbying federal lawmakers substantially over the past year, in part because it isn't pushing for legislation that would allow it to expand its reach to investment advisers.

The Financial Industry Regulatory Authority Inc. recorded $220,000 in lobbying expenses for the second quarter, according to a report filed with the Clerk of the House of Representatives, bringing its total expenditures for Capitol Hill advocacy to $450,000 so far this year.

At the halfway point of 2012, Finra had spent $550,000. Last year, Finra was spearheading support for a measure that would establish a self-regulatory organization for investment advisers.

Adviser SRO

Although that bill, written by Rep. Spencer Bachus, R-Ala., then chairman of the House Financial Services Committee, didn't mention Finra by name, the organization argued that it was best positioned to become the adviser SRO — the role it fills for brokers.

Mr. Bachus' bill died without a committee hearing. He is no longer chairman of the panel and neither he nor any other legislator has reintroduced an SRO bill this year.

Last year, Finra listed Mr. Bachus' bill as one of its issues on its lobbying disclosure form. This year, Finra's description is generic: “regulation of broker-dealers, securities industry and markets ... investor protection and education.”

Finra's lobbying costs still surpass investment adviser groups'.

The Investment Adviser Association spent $90,000 in the first half, down from $130,000 a year earlier.

The Financial Planning Association spent $75,000 on lobbying through July 1, according to the Center for Responsive Politics.

The Financial Services Institute Inc. spent $399,000 in the first half, up from $180,000 a year earlier.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

The client of the future

Your clients of tomorrow want you to stay ahead of the curve with technology. Some of the industry’s top young advisers and thought leaders explain what they think tomorrow’s clients will need.

Latest news & opinion

Will Jeffrey Gundlach's Trump-like approach on Twitter work in financial services?

The DoubleLine CEO's attacks on Wall Street Journal reporters is igniting a discussion on what's fair game on social media.

Fidelity wins arb case against wine mogul but earns a rebuke from Finra

In the case of investor Peter Deutsch, Fidelity doesn't have to pay any compensation, but regulator said firm put its interests ahead of his.

Plaintiffs win in Tibble vs. Edison 401(k) fee case

After a decade of activity around the lawsuit, including a hearing before the U.S. Supreme Court, judge rules a prudent fiduciary would have invested in institutional shares.

Advisers get more breathing room to make Form ADV changes

RIAs can enter '0' in some new parts of the document before their annual filing next year.

Since banking scandal, Wells Fargo advisers with more than $19.2 billion leave firm

Despite a trying year, the firm has said it will sweeten signing bonuses for veteran advisers.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print