A Personal Perspective – The Importance of the Independent Contractor Model for Financial Advisors

In the latest in SIFMA’s podcast series, SIFMA president and CEO Kenneth E. Bentsen, Jr. is joined by independent financial planning professional Steve Budin, the President of the Budin Group. During their conversation, Steve explains his work on behalf of his clients and community as a financial advisor, and why his independent contractor status is important to that work.

Nationwide, approximately 150,000 registered brokers and investment advisors operate their own financial advisory firms utilizing the independent contractor model. A bill currently under consideration in Congress known as the ‘PRO Act’ would change how independent contractor status is determined, adversely impacting these hundreds of thousands of independent financial advisors, including Steve.

As explained in the podcast, SIFMA is encouraging lawmakers to exempt independent financial advisors from this legislation. Narrower, more focused legislation would avoid the unintended consequence of capturing traditional business models.

 

 

Kenneth E. Bentsen, Jr. is president and CEO of SIFMA, the voice of the nation’s securities industry. He is also chief executive officer of the Global Financial Markets Association (GFMA).

Steven Budin, JD, CFP® is the President of the Budin Group.