Bill Overview
Title: Increasing Access to Adviser Information Act
Description: This bill excludes from investment adviser regulations any research activity performed by a broker or a dealer in line with similar foreign laws and regulations.
Sponsors: Sen. Moran, Jerry [R-KS]
Target Audience
Population: People working in or benefiting from services provided by brokers and dealers, excluding those covered by investment adviser regulations
Estimated Size: 1000000
- The bill pertains to investment advisers, brokers, and dealers, which are key components of the financial services industry.
- Excluding certain activities from investment adviser regulations could affect how brokers and dealers operate, potentially impacting their business practices and competitiveness.
- The financial services industry is a major component of the global economy, involving millions of professionals worldwide.
- In 2021, the U.S. Bureau of Labor Statistics reported approximately 375,000 personal financial advisers in the United States alone.
- The bill also references alignment with foreign laws and regulations, suggesting international brokerage and dealer communities might be affected.
Reasoning
- The policy primarily impacts professionals in the financial services industry, particularly those involved in brokerage and dealer activities.
- Given the focus on excluding specific research activities from investment adviser regulations, those involved in compliance and legal duties might see changes in their work.
- It's important to consider both direct effects on professionals in the industry and indirect effects on clients who benefit from improved or altered services.
- While this is a niche sector, its influence due to the nature of financial markets and the potential impact on individuals who use brokerage services must be analyzed.
- Wellbeing impacts will vary significantly based on whether individuals stand to benefit from reduced regulatory burden or face challenges due to lessened consumer protections.
Simulated Interviews
Broker (New York, NY)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- The new policy might reduce some of the administrative burdens we face.
- It aligns with our operations in European markets; could make cross-border advice smoother.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Financial Adviser (Chicago, IL)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I am concerned about the potential for reduced oversight in certain brokerage activities.
- This could lead to gaps in consumer protection, affecting trust over time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 5 | 7 |
Personal Financial Planner (Los Angeles, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- This might open up a chance for more personalized services from brokers.
- Could provide more investment options for my clients.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 4 |
Retired (Tulsa, OK)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- Not sure how these changes might affect my portfolios.
- My adviser says it could mean more investment options but I worry about risk.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 6 | 7 |
Compliance Officer (Houston, TX)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 3/20
Statement of Opinion:
- The reduction in regulated activities could create new challenges in regulatory compliance.
- This might simplify some processes but could increase risk.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 5 | 7 |
| Year 10 | 5 | 7 |
| Year 20 | 5 | 6 |
Investment Analyst (Boston, MA)
Age: 42 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 4/20
Statement of Opinion:
- Adjusting to fewer regulations could shift how research data is shared.
- Might impact our competitive edge internationally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 7 |
Financial Consultant (Atlanta, GA)
Age: 55 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Depending on the implementation, it could make brokerage services more accessible.
- More clarity needed on how consumer protection is maintained.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 7 |
Tech Entrepreneur (San Francisco, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This policy might facilitate developing new fintech solutions.
- Potentially lowers the cost of regulatory compliance for integrating third-party services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Retired Financial Adviser (Miami, FL)
Age: 62 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Less regulation might bring back some unwanted practices we fought against.
- Balance needs to be found between opportunity and protection.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 5 | 6 |
| Year 20 | 4 | 5 |
Economics Professor (Seattle, WA)
Age: 39 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- The change might prove beneficial for innovation in brokerage services.
- Impacts must be monitored to ensure consumers aren't disadvantaged.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $25000000 (Low: $15000000, High: $35000000)
Year 2: $15000000 (Low: $10000000, High: $20000000)
Year 3: $10000000 (Low: $5000000, High: $15000000)
Year 5: $5000000 (Low: $0, High: $10000000)
Year 10: $0 (Low: $0, High: $5000000)
Year 100: $0 (Low: $0, High: $1000000)
Key Considerations
- The bill aligns U.S. regulations with international norms which could have broad economic implications.
- Initial implementation costs might be a factor but long-term regulatory savings and economic gains are expected.
- The broader financial markets, including both U.S. and international financial services industries, could experience shifts in competitive dynamics.