Hill Advocacy Update


There’s been a flurry of activity on Capitol Hill this year affecting investment advisers, from proposed revisions to the new tax law… to modifications to Dodd-Frank… to legislation to reduce the cumulative regulatory burden on smaller advisers. The IAA engages in advocacy on these and other important policy priorities, through visits with legislators and their staffers by our government relations staff, IAA Board members and executives from IAA members firms – and through member grassroots activity on specific pieces of legislation via the IAA’s online Take Action Now tool.

Last Updated August 1, 2018

House Overwhelmingly Approves IAA-Backed Bill to Reduce Burdens on Smaller Advisers

IAA Urges Members to Contact Their Senators Now to Voice Support

By a nearly unanimous vote – 406-4 – the House of Representatives on July 17 approved the IAA-backed Investment Adviser Regulatory Flexibility Improvement Act as part of the JOBS and Investor Confidence Act of 2018. The legislation is designed to ease the regulatory burden on smaller advisers by requiring the SEC to substantially revise its definitions of a "small business" and "small organization" for purposes of assessing the impact of its rulemakings.

To gain consideration of this bill by the Senate, it is crucial that advisers use the IAA’s online Take Action Now tool to contact their Senators to urge them to support a similar bill before the legislative calendar runs out for the 115th Congress. The Take Action Now tool enables advisers to contact their elected representatives quickly and easily, with a standard letter that can be customized by the individual user.

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New Tax Legislation Under Development; IAA Advocates Amending Two Tax Law Provisions that Unfairly Disadvantage Advisers, Clients

House Ways and Means Committee Chairman Kevin Brady (R-Texas) disclosed in late June that the tax-writing committee is drafting “Tax Reform 2.0,” a follow-up to the 2017 Tax Cuts and Jobs Act (TCJA). Brady said a legislative outline will be circulated to House Republicans in late summer and a tax bill could be ready for consideration on the House floor in the fall.

This schedule makes it critically important that your elected representatives to Congress hear from you now about amending two provisions of the TCJA that unfairly disadvantage investment advisory firms and their clients. IAA members who attended our Adviser Advocacy Day on June 13 raised these issues in their meetings on Capitol Hill.

Specifically, the IAA urges advisers to use our online Take Action Now tool and contact Congress to restore the deductibility of investment advisory fees as an itemized deduction and to make advisory firms eligible for the new 20 percent deduction for pass-through businesses.

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RIA Executives Press Industry Priorities on IAA’s 11th Annual Adviser Advocacy Day

More than 70 executives from investment advisory firms from 24 states took adviser issues to more than 80 congressional offices as part of the IAA’s 11th Annual Adviser Advocacy Day on June 13, educating legislators and their staffs about our industry’s top priorities. Summaries of those priorities, and talking points for key issues, are available on the IAA website’s Adviser Advocacy Day Resources page. Key issues addressed on Adviser Advocacy Day included:

Taxes – specifically, restoring the tax deductibility of investment advisory fees and allowing investment advisers to benefit from the 20 percent deduction for pass-through businesses;

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Other Hill Developments

Senate Banking Committee Confirmation Hearing for SEC Nominee Elad Roisman
The Senate Banking Committee conducted a confirmation hearing on July 24 for Elad Roisman, President Trump’s nominee to fill the seat of recently departed Securities and Exchange Commissioner Michael Piwowar.

SEC Chairman Jay Clayton Testifies Before House Financial Services
Chairman Clayton addressed proposed new rules on standards of conduct for broker-dealers and investment advisers, the agency’s efforts to “modernize and streamline” existing rules, and OCIE’s increase in adviser examinations.

Congress Approves Modest Dodd-Frank Reform Bill, Including Senior$afe Act
The Senior$afe Act provides a safe harbor from civil liability for advisers and other financial professionals who report suspected elder financial abuse to appropriate governmental authorities.

Take Action Now

The IAA’s online Take Action Now tool is designed to make contacting your federal legislators to voice support for legislation benefitting investment advisers simple and quick. The tool provides you with a standard letter that can be easily customized by the individual user and sends it automatically to your Senators and Representatives. Study after study demonstrates that direct communication from constituents is the most effective way to educate and influence legislators. Using our Take Action Now tool allows you to become part of the IAA’s grassroots advocacy efforts and make your voice heard on legislation impacting our industry and your business.