(Financial Services Institute) - Today, the Financial Services Institute (FSI) submitted a comment letter to the Department of Labor (DOL) in support of the Department’s independent contractor rule proposal.
As the organization representing independent financial advisors and independent financial services firms, FSI expressed support for the Proposed Rule, noting that it provides much-needed clarity and predictability. The Proposed Rule also avoids the significant costs and legal uncertainty introduced by the DOL’s 2024 worker classification rule. The proposal would preserve independent financial advisors’ chosen independent contractor status and preserve Americans’ access to professional, affordable financial advice and services.
“We thank the Department for the opportunity to comment on the proposal and share our insights, especially given the important role independent contractor classification plays in the independent financial services industry and the critical services our members provide to American investors,” said FSI President & CEO Dale Brown. “Independent financial advisors choose the independent model so that they can build their own business, develop their own staff and provide high-quality, personalized service to their clients. The Proposed Rule provides the clarity and certainty independent financial services firms and advisors need to operate confidently and focus on helping hard-working Americans achieve their financial goals. We look forward to continuing to engage with the Department on the Proposed Rule so we can ensure advisors’ independent contractor status is secure.”
Key points from FSI’s comment letter include:
- The “core factor” framework outlined in the Proposed Rule provides a simpler, more predictable test for worker classification.
- The Proposed Rule clarifies that requirements to comply with legal obligations, such as securities regulations, do not constitute “control” and are not indicia of employee status.
- By clarifying that compliance with legal, safety and other obligations does not constitute “control,” the Proposed Rule will avoid a race to the bottom. Rather than narrowing or eliminating these important provisions from contracts to avoid misclassification of financial advisors as employees, these firms can uphold their high compliance standards without fear.
- Independent financial advisors, like many workers, choose the independent contractor model for flexibility and to build equity in their own businesses. The Proposed Rule helps avoid workforce losses caused by forced reclassification.
- A survey conducted by Oxford Economics, indicated that reclassifying independent financial advisors as employees would lead to mass retirements among advisors, limiting investor access to financial advice.
- The Proposed Rule reduces the regulatory uncertainty introduced by the 2024 Rule, which would have dampened innovation, increased litigation costs and forced major operational changes across industries, particularly the financial services and insurance industry.
By Financial Services Institute
April 28, 2026
