Major financial firms and the trade associations representing them are once again overwhelming investment adviser organizations and investor advocates organization in political spending.
But they say they’re making inroads on Capitol Hill through educating lawmakers about their position on investment advice policy.
As is the case in every election cycle, Wall Street is opening its wallet wide to contribute to political campaigns, according to Federal Election Commission filings.
For the 2020 election cycle so far, the top financial firm spenders include UBS Americas ($1.9 million), Morgan Stanley ($958,500), Goldman Sachs ($858,500), TIAA ($829,000), LPL Financial ($617,700), Charles Schwab ($452,000), Vanguard Group ($442,500), Ameriprise financial ($263,500) and Edwards Jones ($168,100).
Trade associations representing financial services firms also are spending heavily. The Investment Company Institute, which represents the mutual fund industry, has donated $1.6 million. Other groups include the Securities Industry and Financial Markets Association ($448,500) and the Financial Services Institute ($177,000).
Investment adviser organizations and investor advocates, however, spend much less on campaigns. The Investment Adviser Association has contributed $38,000, while the Financial Planning Association has made $32,500 in donations and the Consumer Federation of America has contributed $12,000.
Despite being outgunned on campaign spending, which can be crucial in building relationships with lawmakers, one investor advocate said they’re succeeding in spreading the word about the importance of fiduciary duty on Capitol Hill, especially among Democratic lawmakers.
Ron Rhoades, associate professor of finance at Western Kentucky University, points to the growing number of Democrats opposing the Securities and Exchange Commission’s Regulation Best Interest and a recent Department of Labor advice rule.
“It’s led to a much greater awareness of what the fiduciary standard is and how it’s been diminished,” Rhoades said. “The message has been heard on Capitol Hill.”
That momentum could contribute to legislative and regulatory victories in battles against the financial industry even though investor advocates are losing the political spending war.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
