Who will speak for our clients on Capitol Hill?

I don’t have to tell financial professionals that our industry is among the most highly regulated in the country. Policymakers — from regulators to lawmakers, on the federal level and in the states — have their fingerprints all over the ways we run our businesses and serve our clients.

Politicians are inevitably involved in our business, so it is imperative that we be politically involved.  Our grassroots activism is essential. No one knows more about how we serve consumers and our communities than we do, yet politicians are making decisions every day that impact that service. It is incumbent upon us to ensure they understand what we do and how those decisions impact the families and businesses that are their constituents and our clients.

Right now, the U.S. Department of Labor is on the verge of implementing a rule that would radically change the way many professionals deliver insurance and financial services. The fiduciary-only proposal would limit the ability of consumers to choose how and from whom they receive financial guidance. It would result in many middle- and lower-income retirement savers not receiving any services whatsoever.

It’s not as though consumer protections do not exist. The Securities and Exchange Commission’s Regulation Best Interest is a robust rule that requires financial professionals to work in their clients’ best interests. Similarly, the National Association of Insurance Commissioners has created a model regulation for annuity transactions, which incorporated input from NAIFA. The model regulation has been adopted by 43 states at the time of writing, with several more likely to put it into place soon. The NAIC model also provides strong consumer protections. 

Political advocacy by members of NAIFA-Massachusetts was instrumental in getting the model adopted in my home state. The same scenario has played out across the country where politically involved financial professionals have exerted their influence as citizens and made a real difference. NAIFA is now putting that same influence to work on the federal level to oppose the DOL proposal.

An election year inevitably brings tax law discussions. Candidates will present a variety of plans, some of which will lay the groundwork for future legislation. We would be naïve to think they won’t look at our industry. Of the top 10 federal tax expenditures, seven impact insurance and financial services. These include things like defined contribution and defined benefit plans, capital gains and dividends, and employer contributions to health and long-term care insurance. These expenditures include more than $4.5 trillion from the income and retirement bucket and more than $1.8 trillion from the insurance industry.

For politicians looking to fund the government, these are enticing pools of potential revenue. If we don’t convince them that promoting our clients’ financial security is critical for the American people and our economy, no one will. Election-year politics shine a spotlight on our need to advocate for our businesses and clients.

Being a trusted resource

Fortunately, advocating for our clients is not a difficult thing to do. Our elected officials want to hear from us. Most of them, from both parties, understand that they cannot be experts on every aspect of the insurance and financial services industry. They welcome insights from those of us who are on the front lines working directly with Americans who are also voters and political constituents. Our stories and expertise make a real impact, if we are willing to share them.

This May 20-21, I will be joining hundreds of my colleagues in Washington, D.C., for NAIFA’s annual Congressional Conference. We will take our advocacy message directly to our lawmakers in meetings on Capitol Hill as part of the biggest association fly-in in the insurance and financial services industry. We will tell them about our clients and the real-world effects of congressional decisions. 

I admit, the first time I met with my members of Congress, I was nervous and a little unsure of myself. That’s why an event like the Congressional Conference is so amazing, because it includes grassroots veterans as well as first-timers. We’re all in it together. It’s a great way to make a difference and learn from colleagues who understand the ins and outs of our political system.

Once I got involved, I found grassroots advocacy both addictive and contagious. I have stayed engaged and continue to make a difference. I’ve encouraged and inspired colleagues to do the same. And that’s exactly what we need. The stakes are much too high for financial professionals to remain on the advocacy sidelines. 

Josh O’Gara, CLU, ChFC, CFP, is a financial professional in Needham, Massachusetts. He is the president of NAIFA-Massachusetts and serves as NAIFA’s National Grassroots Committee Chair. Contact him at josh.o’[email protected].