01.27.26

Bipartisan Bill Aims at 'Red Tape' Hindering Small Advisors' Compensation

by: Alex Padalka

A bipartisan bill introduced in the U.S. House of Representatives seeks to reduce regulatory barriers that can limit how small financial advisors are paid. The Clarity for Compensation Act would allow registered investment advisors to receive commissions through their own business entities without triggering additional U.S. Securities and Exchange Commission (SEC) registration as broker-dealers. Supporters argue current rules create unnecessary red tape, higher taxes and fewer choices for clients. Industry groups including the Financial Services Institute and Finseca back the proposal, saying it offers more certainty than recent SEC guidance and could help address a projected shortage of financial advisors by encouraging new entrants to the profession.

Read the full article on Financial Advisor IQ