FSI urges members to engage regulators, lawmakers

Financial Services Institute challenges members to engage regulators, political leaders on key issues.

The Financial Services Institute, the leading trade group for independent contractor broker-dealers, in 2018 intends to lean more heavily on individual financial advisers as part of its effort to influence lawmakers in Washington and the states.

“From a strategic perspective, one of the biggest things I can help [with] this year is bringing the financial adviser voice more fully into the process,” said David Knoch, president and chief operating officer of 1st Global and vice chair of FSI’s board of directors. “That’s one of the biggest advantages of having a financial adviser as chairman of FSI. We have the opportunity to make sure the powerful financial adviser is included.”

Mr. Knoch, along with several top FSI executives, spoke Tuesday morning to reporters in Dallas at the organization’s annual meeting, OneVoice.

Politicians and regulators “want to hear stories from financial advisers more than they want to hear stories from people like me,” said Mr. Knoch. “We want more financial advisers more actively engaged in the advocacy process. FSI has to be more proactive about it.”

The FSI’s current chairman, Dean Harman, is an adviser, noted Dale Brown, CEO of the advocacy organization.

“Why should Dean Harmon and local independent financial advisers invest their time and effort in this?” Mr. Brown asked. “I think more and more advisers are coming to realize that it’s a responsibility and an opportunity

“They’ve built businesses, and they’ve got deep, long-standing client relationships,” said Mr. Brown. “And so they have an obligation and responsibility to those clients, businesses and families to work proactively and constructively take some steps on behalf of that. And it’s an opportunity to shape a better outcome, ultimately for clients.”

The goal is to help advisers cultivate relationships with elected officials on a long-term, ongoing basis, he said.

“We already have lots of FSI adviser members who are politically active and have long-standing relationships with their member of Congress or a state elected official,” he added.