It's part of a lobbying effort to obtain explicit, legal independent contractor status for registered rep advisors—a goal that has been on the FSI’s agenda for a number of years now.
“We want to clarify the independent contractor status for independent advisors because, until we do, it looms out there,” Harman said.
FSI is also working to relieve the tax burden for independent advisors who are currently required to pay higher individual tax rates on commission income, rather than lower pass-through rates. Success will require convincing the SEC to modify a current rule that requires commissions, but not fee income, to be paid directly to individuals as income, said Harman.