Independent Contractor Model Key to Economic Opportunity

ASA signs joint-trade letter expressing concerns with the PRO Act

WASHINGTON – The American Securities Association (ASA) today joined several financial trades in sending a letter to House leadership expressing some concerns with the PRO Act, legislation seeking to change the definition of “independent contractor” in a way that would cause significant disruption to the financial services industry and every American investor.

“Reclassifying independent contractors as employees would have a direct negative economic impact on risk-taking entrepreneurs and small businesses across the country,” said ASA CEO Chris Iacovella. “While intended to target the gig economy, the PRO Act would impose collateral damage across the financial services space and unnecessarily interfere with American working families saving for their future.”

“The PRO Act’s ‘ABC test’ could eliminate the choice a majority of practitioners have made to serve clients independently,” the financial trades wrote in the letter. “In turn that could drastically reduce clients’ ability to access high quality advice for their insurance, investment and retirement security needs.”

“As you consider H.R. 842, we hope that you will be mindful of the negative impact that this legislation will have on customers and the agents and advisors working to ensure that their clients have the resources to make wise financial decisions and ensure financial security for themselves and their families.”

To read the full letter, click here.

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ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.