Lobbying costs at Finra down from last year

Pullback on push for adviser SRO is one big reason.
JUL 21, 2013
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.

Latest News

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

Navigating the great wealth transfer: Are advisors ready for both waves?
Navigating the great wealth transfer: Are advisors ready for both waves?

After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.

UBS Financial loses another investor lawsuit involving Tesla stock
UBS Financial loses another investor lawsuit involving Tesla stock

The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.

Trump's one big beautiful bill reshapes charitable giving for donors and advisors
Trump's one big beautiful bill reshapes charitable giving for donors and advisors

An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.