Advocacy in action blog

On April 9, the Office of Advocacy at the U.S. Small Business Administration (SBA) convened a roundtable on the Department of Labor’s proposed Independent Contractor Rule, a proposal that would rescind and replace the 2024 rule that has created uncertainty for financial professionals and small businesses alike.

Financial literacy is often framed as a simple concept: helping Americans better understand money. But in reality, financial literacy is more than knowledge; it’s the foundation of long-term financial security.

The National Association of Insurance and Financial Advisors (NAIFA) praised the release of the final Medicare Advantage and Part D rule (CMS-4212-P), which incorporates several of NAIFA’s core recommendations aimed at improving access to professional guidance while reducing unnecessary administrative burdens on agents and brokers.

The IRS has reported that parents have enrolled more than 4 million American children in 530A accounts, also known as Trump Accounts. These accounts are a new type of tax-advantaged individual retirement account for children under the age of 18. Under a pilot program, the federal government gives children born between January 1, 2025, and December 31, 2028, whose parents set up accounts in their name $1,000 in seed money. Beginning July 4, 2026, parents, relatives, friends, employers, organizations, and individuals may make contributions to the plans up to annual limits. Trump accounts create opportunities for financial professionals to start conversations with consumers and clients with children about planning for the future, boosting financial literacy, and providing their children with solid financial foundations.

NAIFA supports public policy that that promotes financial literacy, encourages Americans to prepare for their financial futures, and offers families opportunities to achieve financial security. President Christopher Gandy has spoken and written about the opportunities afforded by 530A accounts, also known as Trump Accounts. Gandy has spoken to U.S. Treasury officials about the great promise of these financial products and Treasury has asked for feedback from industry professionals. You can help us out by answering a few brief questions.

The U.S. District Court for the Northern District of Texas issued a final judgment vacating the Department of Labor's Retirement Security Rule: Definition of and Investment Advice Fiduciary and related Prohibited Transaction Exemptions. The Texas District Court’s decision to vacate the fiduciary-only regulation is an advocacy win for NAIFA and a win for all retirement savers. NAIFA has strongly opposed the misguided regulation, which significantly would have restricted consumer choice and access to retirement advice.

The U.S. Department of Labor released its newly proposed independent contractor rule to determine whether workers are employees or independent contractors under the Fair Labor Standards Act (FLSA). The proposed rule, when finalized, will replace the 2024 federal rule on independent contractor classification.

NAIFA CEO Kevin Mayeux, CAE, issued the following statement:

“NAIFA is encouraged by the Department of Labor’s release of a new rule to replace the existing 2024 federal rule on independent contractor classification. The 2024 Rule fails to provide an analysis for distinguishing between independent contractors and employees under the FLSA that is sufficiently clear and leads to predictable outcomes. The 2024 Rule’s description of several economic reality factors could be viewed as setting a higher bar to find independent contractor status than required under the law. Among other harms, an analysis which is ambiguous or perceived as too restrictive of independent contracting can deter businesses from engaging with bona fide independent contractors or induce them to unnecessarily classify such individuals as employees.

Many financial advisors operate locally as small business owners, employing others on their staff, and serving the members of their communities. Reclassifying them as employees rather than independent contractors would have threated their ability to best serve their clients and to ensure that their small businesses can operate efficiently.

NAIFA is currently reviewing the proposed rule to determine the full impact on independent contractors and will remain diligent to ensure that NAIFA members are best positioned to maintain their independent business operations and to best serve their clients. 

We have previously provided extensive comments and testimony to the DOL on the topic of preserving independent contractors’ rights and we now look forward to working with the department as it works to improve policies that support the independence of NAIFA members and the ability of consumers to receive professional financial guidance.”

NAIFA President Christopher Gandy along with NAIFA’s Government Relations team met with Department of the Treasury staff on February 24 to discuss the implementation and rollout of “Trump Accounts,” the newly established tax-deferred investment accounts for children under age 18 created by legislation passed last year.

The National Association of Insurance and Financial Advisors (NAIFA) shares President Trump’s goal of helping more Americans achieve financial security and build stronger retirement savings.

The National Association of Insurance and Financial Advisors (NAIFA) submitted formal comments to the Internal Revenue Service in response to Notice 2025-68 regarding the implementation of Section 530A Trump Accounts.  Read NAIFA coverage in Investment News, 401kSpecialist and Advisor Magazine.