Lobbying expenses for the Financial Industry Regulation Authority came to $450,000 in the first half of 2013, compared to the $550,000 reported at the halfway point of 2012, according to reports filed with the Clerk of the House of Representatives.
FINRA is the country's largest independent regulator of securities firms, working to protect investors by overseeing more than 4,200 brokerage firms and 600,000 brokers.
The $100,000 drop reflects increased efforts in 2012 to create a self-regulatory organization for investment advisors, positioning FINRA itself as the best candidate for the role.
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Although a bill on the issue was introduced by Rep. Spencer Bachus, R-Ala., then the chairman of the House Financial Services Committee, it never found a cosponsor and died without a committee hearing. No similar bills have been brought forward this year.
On its lobbying disclosure form for 2012, the group listed the Bachus bill as one of its key issues. This year's listings are more general including "regulation of broker-dealers, securities industry and markets … investor protection and education."
And despite lacking a bill at the moment, FINRA believes it's still the best option for a self-regulatory organization for investment advisors — a role it holds currently for brokers.
At its annual meeting in May, the group asserted the SEC examines only 8 percent of its nearly 10,000 registered investment advisors annually.
Although spending at FINRA has dropped, the group outspends other investor advisor groups. That said, the Financial Services Institute significantly increased its lobbying budget in 2013, entering the FINRA ballpark by spending $399,000 in the first half of 2013, compared to $180,000 for the same period of 2012. The FSI said it's doubled its in-house lobbying staff and hired outside help.
According to the Center for Responsive Politics, for the six-month period ended July 1, the Investment Adviser Association spent $90,000, while the Financial Planning Association spent $130,000.
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