Washington, D.C.—The Chief Executive Officer of the Equity Dealers of America, Chris Iacovella, released the following statement today after the Senate Banking Committee Hearing “Virtual Currencies: The Oversight Role of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission”. “We strongly support Chair Clayton’s position that ICOs are security offerings that should be registered with the SEC. This issue is about investor protection, pure and simple, and investors should be afforded all of the protections they… read more →
Some brokerage firms are concerned that the tax overhaul could lead to upheaval, pushing their employees to set up their own shops or switch firms to lower their tax bills. “We are very concerned at the impact this could have on the ability of firms in the industry to offer different business models,” said Christopher Iacovella, who runs the Equity Dealers of America, a trade association for regional brokerages including Janney Montgomery Scott, D.A. Davidson Companies and Raymond James Financial… read more →
In the wealth management business there are two models: one in which the financial advisors (FAs) are independent contractors and are eligible for the pass-through tax treatment and the other model in which the FAs are employees (Employee FAs) and not eligible for the pass-through tax treatment. We believe that adopting language in the tax code that chooses one business model over another was an unintended consequence of the tax reform effort, and that it can be corrected. EDA Letter to… read more →
“If the disparate tax treatment between the two models finds its way into the final legislation, then [financial advisers] could be motivated to leave employee FA model firms or re-classify as independent contractors solely [to] take advantage of the 23% deduction…and receive a lower tax rate on their income,” wrote Christopher A. Iacovella, EDA chief executive. “We request a change in the final language to prevent any tax arbitrage that could threaten the employee FA business model.” http://www.investmentnews.com/article/20171213/FREE/171219963
The Chief Executive Officer of the Equity Dealers of America, Chris Iacovella, released the following statement today about the “U.S. Treasury Department’s Second Report on The Administration’s Core Principles Of Financial Regulation, which focused on Capital Formation”: “The EDA strongly supports the recommendations in the Treasury report. We believe they are necessary to help small businesses. The current equity market structure does not work for small and mid-size companies. Now is the time to fix the current market structure… read more →
EDA submitted a letter asking the SEC to create a uniform best interest standard for broker-dealers and investment advisors using the DOL Impartial Conduct Standards as its baseline. Letter to SEC on Best Interest Standard 2017
Reforming the capital markets has become a priority for investors, issuers, public equity firms, and regulators in the wake of the dramatic decline in the number of public companies in the U.S. The EDA had the chance to discuss how to achieve this objective with NASDAQ. https://listingcenter.nasdaq.com/clearinghouse.aspx#qna
EDA strongly supports efforts to improve the capital formation process, the secondary trading, and the research environment for small businesses. Increased access to capital will lead to job creation. Small Business Access to Capital Submission to Treasury
The EDA is a member of the Corporate Governance Coalition for Investor Value, which sent a letter today to the SEC asking it to increasing its shareholder proposal re-submission thresholds. The coalition believes that “[r]ule14a-8 increasingly has been used by a minority of activist shareholders to promote agendas that are uncorrelated to enhancing long-term value for shareholders” who waste company resources by submitting “the same proposals year after year”. CGCIV Final Resubmission Thresholds letter (002)
The EDA sent a letter to FINRA recommending that it not move forward with its Proposal to provide a safe harbor for desk commentary. The EDA believes that the Proposal is not workable, it lacks an adequate cost-benefit analysis, it misconstrues how the sales and trading business of its membership works in practice, and it puts examiners in the unenviable position of evaluating desk commentary under the subjective “I know it, when I see it” standard. The Proposal imposes the… read more →
The Equity Dealers of America submitted a comment letter to the SEC urging the agency to decline to approve a rule proposal from Bats Exchange that would further complicate the equity market structure and add little to no value to market participants. EDA Letter to SEC on Bats Proposal SR-BatsBZX-2017-34
EDA, along with several other trades, expresses its concerns with Nevada law SB 383, which removes the exemption for broker-dealers from the definition of financial planner. Final Joint Letter to Foley_June 23 2017 (002)
The Equity Dealers of America (EDA) appreciates the opportunity to comment on the Financial Industry Regulatory Authority’s (FINRA) notice regarding potential enhancements to certain engagement programs (Engagement Notice). Read the Full Letter
Five years ago last month, a Democratic President, a Democratic Senate, and a Republican House overwhelmingly agreed that the regulatory tax on capital was preventing small businesses from creating jobs. To address this, the JOBS Act was passed. The JOBS Act removed some of the regulatory tax by reducing or eliminating certain regulations for small business. The law established a category of companies with revenue under $1 billion known as emerging growth companies, or EGCs. EGCs are eligible for a… read more →
“The EDA also believes that the Fiduciary Rule should be rescinded in its entirety and that a further delay to the applicability date by the DOL will be necessary to achieve that end. We strongly support this course of action.” Click here, to read the letter.
“Today the Equity Dealers of America filed a comment letter with the DOL supporting its proposed delay of the applicability date.” Click here, to read the letter.
Broker-dealer groups endorse the change, saying it would put them on a level playing field with investment advisers Mar 8, 2017 @ 1:46 pm By Mark Schoeff Jr, Investment News Finra is accepting comments on a proposal that would allow brokers to project the performance of investment strategies in communications with clients. Under the proposal by the Financial Industry Regulatory Authority Inc., a broker could distribute to clients a hypothetical financial plan that includes projected performance of an asset allocation… read more →
“Today the Equity Dealers of America filed a comment letter with FINRA supporting its proposed amendment to Rule 2210. Two highlights from the letter are set forth below: “Providing registered representatives (“RR”) of EDA members with the flexibility to use the Illustration with their clients when discussing asset allocation and investment strategies as set forth in the Regulatory Notice 17-06, even if we ultimately decide not to use it, would place our members on a level playing field with stand-alone… read more →
The Equity Dealers of America (EDA) is announcing its FY 2016 Board Leadership Washington, D.C.—The EDA Membership has named Nik Fisken of Stephens Inc. as its Chairman and Jeffrey Klinefelter of Piper Jaffray & Co. as its Vice Chairman, both will serve on the EDA Executive Committee. EDA Membership also named Michael Purpura of D.A. Davidson & Co., Brian Alexander of Raymond James Financial, and Peter Kies of Robert W. Baird & Co. to serve on the EDA Executive Committee.… read more →
The Equity Dealers of America write Speaker Ryan and Leader Pelosi to urge the U.S. House of Representatives to take up and pass H.J. Res. 88, ‘Disapproving the rule submitted by the Department of Labor relating the definition of the term “Fiduciary”‘. Click here, to read the letter.