Meeks, Nunn Tout Unanimous Bipartisan Victory on Bill to Expand Access to Financial Advisement

WASHINGTON, D.C. - Today, U.S. Reps. Gregory W. Meeks (D-NY-05) and Zach Nunn (R-IA-03) secured unanimous passage of their bipartisan Clarity for Compensation Act during a House Financial Services Committee markup. The measure supports independent financial advisors by removing outdated regulatory barriers that penalize them for operating as small businesses.

"Access to trusted financial advisors can make the difference between just getting by and building generational wealth," Rep. Meeks said. "For many minority households, certified financial advisement remains out of reach because there are not enough advisors serving communities like my district. This bill bridges the gap and modernizes rules so that advisory firms can grow and recruit the next generation of financial professionals.

Under current law, many registered financial advisors can't receive compensation through their own business entities - a restriction that doesn't apply to lawyers, accountants, or insurance agents. This outdated rule creates unnecessary burden and makes it harder for small advisory firms to stay independent, particularly in underserved communities. The Clarity for Compensation Act fixes these issues and as a result, expands access to financial advice and planning for minority and underserved communities.

"Small-town financial advisors shouldn't be held back by outdated regulations," Rep. Nunn said. "They help families save for college, buy their first home, and plan for retirement. Today's unanimous committee vote brings us one step closer to giving independent financial advisors the same flexibility other licensed professionals already have - cutting unnecessary red tape so they can spend more time serving Iowa families."

"As the industry evolves, the rules must also modernize to meet the needs of advisors, firms and, most importantly, American investors. Independent financial advisors need clarity and certainty that receiving commissions through their business entities will not expose them to claims by a future SEC that they are required to register as broker-dealers," said Dale Brown, Financial Services Institute President & CEO. "This bill ensures that these businesses can operate more efficiently, recruit the next generation of advisors, and offer their clients a wider range of products and services to better meet their financial needs. We thank Representatives Nunn and Meeks for introducing legislation that solves an administrative headache for independent financial advisors, allowing them to focus on helping their Main Street clients achieve a secure financial future."

"Finseca applauds Reps. Zach Nunn and Gregory Meeks for introducing this bipartisan legislation," said Marc Cadin, Finseca CEO. "With a looming shortage of 100,000 advisors, this legislation creates regulatory certainty that could open the door for new talent, build future leaders, and strengthen the workforce-ensuring financial security professionals can keep helping Americans achieve financial security."

The bipartisan Clarity for Compensation Act now awaits consideration on the House floor.

Read the bill text here.

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