Adviser, insurance groups step up spending on political campaigns
Some have a board mandate to shell out more, while others have been encouraged by seeing their donations enhance their lobbying efforts.
Interest groups representing financial advisers are boosting their donations to political campaigns this election season.
The spending upswing is evident both on the investment adviser and the insurance side of the industry.
The Investment Adviser Association has contributed $39,000 to House and Senate campaigns in the election cycle through June 30, according to its most recent filing with the Federal Election Commission.
That’s an increase from $34,000 for the entire 2014 cycle and $25,000 for 2012. An election cycle runs from Jan. 1 of the previous year through Dec. 31 of the election year.
Two insurance groups also have increased their political contributions.
The Insured Retirement Institute already has spent $163,700 on 2016 campaigns, compared to $139,300 in 2014 and $59,000 in 2012. The American Council of Life Insurers has spent $1 million in the 2016 cycle, up from $663,000 in 2014 and $552,000 in 2012.
For IRI, increased political spending is a mandate from its board.
“As we’ve continued to expand and grow, we have benefitted from a highly engaged board, who have made the PAC a priority,” IRI spokesman Andrew Simonelli wrote in an email.
The Financial Planning Association’s campaign spending is down slightly, though several months remain before the elections. It has contributed $44,000 to campaigns so far this cycle, while giving $68,500 in 2014 and $66,950 in 2012, according to the Center for Responsive Politics.
Karen Nystrom, FPA director of advocacy, said its contributions fluctuate each cycle depending on “what we raise and what the board feels comfortable distributing.”
Most other organizations that represent parts of the advice sector are holding their political spending relatively steady, such as the Financial Services Institute, the National Association of Insurance and Financial Advisors, the Securities Industry and Financial Markets Association, and the Investment Company Institute.
Most groups give to lawmakers who serve on the House Financial Services Committee and the Senate Banking Committee. They also tend to distribute their donations evenly between Democrats and Republicans.
Delivering the donation often comes with the benefit of face time with a lawmaker.
The FPA met with Sens. Sherrod Brown, D-Ohio, and Elizabeth Warren, D-Mass., as well as Reps. Scott Garrett, R-N.J., and Bill Foster, D-Ill., at recent political fundraisers. Reps. Kyrsten Sinema, D-Ariz., and Denny Heck, D-Wash., attended an FPA reception in June in Washington.
“To have those conversations is important, on the Hill and off the Hill,” Ms. Nystrom said.
Neil Simon, IAA vice president for government relations, said giving money from the group’s political action committee to congressional candidates augments lobbying and helps highlight adviser issues among lawmakers.
“Using a PAC is a way to raise our profile and strengthen relationships,” he said. “I am convinced we are building up good will on Capitol Hill.”
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