07.28.21
PRO Act Opponents Target New Bill That Could Curtail Independent Advisors
by: Mark Schoeff
Opponents of the Protecting the Right to Organize Act, a unionization bill that threatened independent financial advisors, feel good about defeating it, but they’re worried emerging legislation could also jeopardize independent contractors in the financial industry. Trade associations representing financial advisors are concerned about a bill that is being circulated by Senate Finance Committee Chairman Ron Wyden (D-Ore.) that would reform the unemployment compensation system. One of its provisions would require states to use the so-called ABC test instituted in California to determine whether a worker is an employee or independent contractor. That test could force independent financial advisors to be classified as employees of an affiliated brokerage, registered investment advisor, or insurance company because those firms supervise the advisors for compliance with federal securities and insurance laws.
Read the full article on InvestmentNews.