Finra to shell out $1M on lobbying efforts

Finra has opened up its checkbook to lobby Congress for authority over investment advisers. The Financial Industry Regulatory Authority Inc is on track to increase its lobbying expenditures by about 20% this year — to about $1 million — according to lobbying reports the organization has filed with Congress. Through September, Finra spent $780,000 in lobbying the House of Representatives, the Senate and the Securities and Exchange Commission. In the third quarter alone, it spent $310,000 — more than any quarter in the past four years. Last year, Finra spent $830,000 on lobbying, up from $680,000 in 2007. Finra disclosed this year that it had begun lobbying for “financial regulatory reform” and the “harmonization of regulation of broker-dealers and investment advisers.” In past years, Finra reported that its lobbying efforts were limited to financial regulation, the role of self-regulation and investor protection and education. Finra spokesman Herb Perone declined to comment on Finra's lobbying activities. Lobbying expenditures that organizations report include staff time devoted to lobbying and money paid to outside lobbying firms, said Kenneth Gross, a partner at Skadden Arps Slate Meagher & Flom LLP. As a private, non-profit trade association, Finra is able to spend an unlimited amount to lobby Congress, he said. By contrast, federal law prohibits government agencies from lobbying, although in practice they do influence Congress through liaison offices, Mr. Gross said. To read the full story on Finra's lobbying efforts, please see the Monday, Nov. 23 issue of InvestmentNews.