Judy and Lisa had the opportunity to spend time in our nation’s capital with the LPL Financial Government Relations team and a handful of fellow advisors. Like last year, this is a trip we are humbled by the opportunity to represent our clients, our firm and our community.
While in Washington, D.C., we dedicated ourselves to advocating, educating, and relationship-building with members of Congress on both sides of the aisle. Our messages centered on emphasizing that we are small business owners who are embedded in our communities and provide vital financial services. Moreover, in each meeting, we described how we support “Main Street” investors, deliberately distinguishing ourselves from “Wall Street.”
It is a privilege that Judy and Lisa both sit on the LPL Political Action Committee Board. You can always read more about LPL’s policy positions by visiting the Advocate page on the LPL Government Relations website. It is our continued commitment to you to continue to advocate on your behalf when given the opportunity.
As a small recap, if you are interested in learning more about who we met with or what we discussed, please see below. We left feeling confident that our voices were heard and those we met with have a better understanding of how certain policies will affect our business and you as the end-investor.
We had the opportunity to engage with the following Members:
Former Congressman Frank Guinta (R-NH)
Congressman Josh Gottheimer (D-NJ)
Congresswoman Norma Torres (D-CA)
Congressman Marc Veasey (D-TX)
Congresswoman Ann Wagner (R-MO)
Congressman Brett Guthrie (R-KY)
Rick Dearborn (Former Deputy Chief of Staff to President Donald Trump)
Congressman Anthony Gonzalez (R-OH)
Senator Doug Jones (D-AL)
Jeff Wieand, Office of House Republican Whip Steve Scalise (R-LA)
Congressman Ron Estes (R-KS)
Brittan Specht, Office of Republican Leader Kevin McCarthy (R-CA)
House Majority Leader Steny Hoyer (D-MD)
Congressman Jason Smith (R-MO)
Congresswoman Grace Meng (D-NY)
Congresswoman Joyce Beatty (D-OH)
Congresswoman Katherine Clark (D-MA)
We touched on the following policy issues affecting our industry:
1. The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. There is a retirement savings crisis in our country and most Americans live with the fear of saving enough for retirement. This is a piece of legislature that could potential see a House vote this week and has bi-partisan support. It is geared toward making small business have easier access to offering retirement savings plans. It also considers extending the age of RMDs past 70.5 as we continue to live longer.
2. SEC Regulation Best Interest Standard. A continued discussion from last year’s trip – LPL will continue to work with policymakers at the federal and state levels to promote rules establishing a harmonized best interest standard for the financial services industry, while ensuring that investors maintain access to all available financial services.
3. The 20% pass-through deduction (included in the Tax Cuts and Jobs Act) Our industry has felt that this provision has an unfair advantage given to insurance agents over financial advisors. By allowing the same pass through deduction for companies that can offer similar or same products, it hinders financial advisors when it comes to growing their practice and keeping client fees as low as possible.